India's Forex Reserves Maintain Strong Import Coverage Despite Recent Decline

The Reserve Bank of India Governor announced that the country's foreign exchange reserves currently provide import cover of 10 months, showing a slight moderation from the 11.2-month coverage reported in late 202415. This coverage level, while lower than previous quarters, still represents a robust buffer against external shocks. The announcement comes as India's forex reserves stand at $629.56 billion as of January 20253, down from the all-time high of $704.89 billion reached in September 2024. Despite recent declines, the reserves continue to provide substantial protection for India's external sector stability.

Source: Reserve Bank of India