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RBI Governor Highlights India Economic Resilience
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News18•07-10-2026, 10:34
RBI Governor Highlights India Economic Resilience
- •Gross foreign direct investment shows strong interest from global investors with net FDI inflows reaching $13.8 billion during the first four months of the financial year.
- •Foreign exchange reserves remain comfortable, providing import cover of around 11 months and covering 94.4% of the country external debt.
- •Expected buoyancy in India services trade surplus and robust inward remittances will continue to support the external sector.
- •The balance of payments is expected to record a healthy surplus this year, reinforcing the country external position against global volatility.
- •India remains well placed to absorb global economic uncertainties due to multiple sources of support across its external sector.
Key Questions Answered
India received $13.8 billion in net foreign direct investment during the first four months of the current financial year, compared with $9.6 billion during the same period a year earlier.
India's foreign exchange reserves provide import cover of approximately 11 months, while covering external debt to the extent of 94.4%, offering a substantial cushion against external shocks.
The external sector is expected to be supported by a buoyancy in the services trade surplus, robust inward remittances, implementation of bilateral trade deals like the India-UK trade agreement, and capital-flow measures introduced in June 2026.
