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Informist, Friday, Dec. 5, 2025

--RBI Malhotra: Forex reserves at $686 bln as on Nov 28 
--RBI Malhotra: Import cover from FX reserves of over 11 months 
 

NEW DELHI – India's foreign exchange reserves fell by $1.90 bln to $686.2 billion in the week ended Nov. 28, Reserve Bank of India Governor Sanjay Malhotra said while announcing the outcome of the three-day Monetary Policy Committee meeting Friday. Malhotra said the reserves are sufficient to cover more than 11 months of merchandise imports. "Overall, India's external sector remains resilient. We are confident of meeting our external financing requirements comfortably," Malhotra said. 

The foreign exchange reserves in the week ended Nov. 28 were the lowest since the week ended May 16.

India's foreign exchange reserves fell in the week ended Nov. 21, after having risen the previous week. Data released by the Reserve Bank of India showed reserves fell $4.47 billion on week to $688.10 billion as of Nov. 21.

The governor said India's gross foreign direct investment to India increased in Apr-Sept. Net FDI increased significantly due to a decline in repatriation despite a rise in outflows. Gross FDI flows to India rose 19.4% to $51.8 billion in Apr-Sept from $43.4 billion during the same period a year ago. Net FDI inflows increased a whopping 127.6% to $7.7 billion in first half of 2025-26 from $3.4 billion during the same period a year ago. However, foreign portfolio investment to India recorded net outflows of $0.7 billion so far this financial year due to outflows in the equity segment, he said. 

Flows under external commercial borrowings and non-resident deposit accounts moderated in comparison to the previous year, Malhotra said. Net inflows under external commercial borrowings to India fell to $6.2 billion during Apr-Oct from $8.1 billion a year ago. Non-resident deposits recorded net inflows of $6.1 billion in Apr-Sept, lower than $10.2 billion for the corresponding period a year ago. "Overall, India's external sector remains resilient," Malhotra said. "We are confident of meeting our external financing requirements comfortably."

India's current account deficit moderated to 2.2% of GDP in Jul-Sept from 1.3% of GDP in the corresponding quarter a year ago, driven by robust services exports and strong remittances. "In October, merchandise exports contracted year-on-year, whereas merchandise imports continued to increase for the second consecutive month, resulting in a widening of the trade deficit," Malhotra said. "Healthy services exports coupled with strong remittance receipts are expected to keep CAD modest during 2025-26."

India's merchandise exports contracted 11.9% on year to $34.4 billion, while imports rose sharply by 16.6% to $76.0 billion in October. Services exports during the month stood at $35.2 billion, up 2.2%, while services imports increased 2.9% to $17.7 billion. Net services exports grew 1.5% and stood at $17.4 billion. In Jul-Sept, India's services exports grew 8.8% on year, while services imports rose 3.7% with net services exports growing 14.5% during the same period.  End

US$1 = INR 89.97

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

Reported by Vaishali Tyagi

Edited by Avishek Dutta

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