Union Finance Minister Nirmala Sitharaman assured the Rajya Sabha on Tuesday that India’s foreign exchange reserves remain strong and sufficient to manage the country’s current account deficit, despite recent fluctuations. Addressing concerns raised by opposition members regarding financial stability, Sitharaman highlighted India's strong global standing in forex holdings. She stated that as of March 21, 2025, India’s total foreign exchange reserves stood at $658.8 billion. This positions India as the fourth-largest holder of forex reserves globally, ensuring the country can cover 11 months of imports.

She emphasized that the reserves provide a crucial financial cushion, enabling India to absorb global economic shocks and manage fluctuations effectively. Some lawmakers questioned whether recent changes in reserves were due to interventions by the Reserve Bank of India (RBI) in currency markets. However, Sitharaman dismissed these concerns, assuring that the reserves are stable and well-managed.

She reiterated that India's forex reserves play a vital role in stabilizing the rupee and ensuring the country meets its international financial obligations without excessive reliance on external borrowing. The reserves also act as a safeguard against global uncertainties, strengthening India’s financial security.

While acknowledging a slight dip in reserves, Sitharaman reassured lawmakers that the decline was not alarming and reaffirmed the government’s commitment to maintaining economic stability. She underscored that India's forex reserves reflect a position of strength, reinforcing confidence in the country’s financial resilience.

Disclaimer: This image is taken from PTI.