India's forex reserves at $700.2 bn as of Sept 26, sufficient for 11 months of merchandise imports: RBI

Reserve Bank of India Governor Sanjay Malhotra on Wednesday said that India's foreign exchange reserve as of September 26 stood at $700.2 billion, adding that it is sufficient for 11 months of merchandise imports or 95.4 per cent of the country’s outstanding external debt as of end-March 2025.

As on September 19, India's forex reserves were at $702.57 billion, data released by the Reserve Bank of India (RBI) showed.

The RBI, from time to time, intervenes in the forex market through liquidity operations — including the sale of dollars — to curb sharp volatility in the rupee. Officials emphasize that such interventions are aimed at maintaining orderly market conditions rather than targeting a specific exchange rate level or band.


"Rupee has witnessed some depreciation, accompanied by phases of volatility. We are keep a close watch and will keep necessary steps," Malhotra said.

During his address on the Monetary Policy Committee meeting's decision, Malhotra said that the repo rate has been unchanged at 5.5 per cent. The MPC also maintained its ‘neutral’ stance.

The repo rate, which is the rate at which the central bank lends to commercial banks, was reduced by 100 basis points earlier this year in three steps amid easing consumer price inflation. In the August policy review, the RBI had taken a wait-and-watch approach to assess the impact of US tariffs and other global developments on the domestic economy.

Further, the MPC revised its GDP growth forecast for FY2025–26 upwards to 6.8%, compared with 6.5% projected in August. Quarterly growth for Q1 of next year is projected at 6.4%. Malhotra projected India’s quarterly GDP growth for FY26 at 7.8% in Q1, 7% in Q2, 6.4% in Q3, and 6.2% in Q4.