India's forex reserves dip below $700 billion, slip for second week: RBI data

India's forex reserves dipped below $700 billion after seeing a $1.18 billion dip to $695.49 billion for the week ending July 18, the Reserve Bank of India data shows. During the week, India's foreign assets dipped by $1.2 billion to $587.609 billion, the data shows.

India's gold reserves grew $150 million to $84.499 billion; the special drawing rights (SDRs) dipped $119 million to $18.683 billion; and the reserve position with the IMF slipped $13 million to $4.698 billion.

In the previous week ending July 11, the forex reserves had dipped by $3.06 billion to $696.67 billion.

The RBI, in its latest bulletin this week, said that as of July 11, 2025, India’s foreign exchange reserves provide cover for more than 11 months of goods imports and 95 per cent of the external debt outstanding at end-March 2025.

India’s external debt rose by $67.5 billion from end-March 2024 to $736.3 billion at end-March 2025, with the external debt-to-GDP ratio increasing marginally to 19.1% from 18.5% a year ago.

In its July issue of the bulletin, the RBI said the global macroeconomic environment remained fluid in June and July so far amid geopolitical tensions and tariff policy uncertainties. "Domestic economic activity held up, with improving kharif agricultural season prospects, continued strong momentum in the services sector, and modest growth in industrial activity. Headline CPI inflation remained below 4 per cent for the fifth consecutive month in June, driven by deflation in food prices."

It also said system liquidity remained in surplus to facilitate a faster transmission of policy rate cuts to the credit markets. "The external sector remained resilient, backed by ample foreign exchange reserves and a moderate external debt-to-GDP ratio."