RBI's Assurance on Inflation and External Debt
The Reserve Bank of India Governor, Sanjay Malhotra, assured that despite global shocks, India’s inflation and external debt are well managed.
Key Highlights
- Global shocks due to the West Asia conflict have increased crude oil prices.
- India maintains strong macroeconomic fundamentals and robust policy frameworks.
- Foreign exchange reserves are approximately $700 billion.
Foreign Exchange Reserves
- Reserves provide cover for goods imports for around 11 months.
- They cover about 92% of external debt as of December 2025.
- The RBI intervened in the forex market to stabilize the rupee.
Regulatory Reforms and Economic Engagement
- Commitment to regulatory reforms and ease of access for foreign investors.
- Expansion of global economic engagement, with eight FTAs covering 37 countries.
- Growth in government and corporate bond markets.
Inflation Insights
- CPI headline inflation rose to 3.4% in March from 3.2% in February, driven by food and fuel costs.
- The RBI aims to maintain headline inflation at 4%, with a 2% variation.
- Core CPI inflation, excluding food and fuel, remained stable.
Global Investor Confidence
Malhotra emphasized the resilience of India’s economic management, reinforcing global investor confidence in India's growth story.
