India’s Record Forex Reserves | RBI’s Cushion Amid US Trade Tensions

BTTV’s Shailendra Bhatnagar speaks with Rumki Majumdar, Economist at Deloitte, about India’s record-high forex reserves and ongoing trade tensions with the U.S. India now has a forex cover of nearly 11 months of imports, giving the RBI strong leverage to manage currency volatility and maintain rupee stability. Majumdar highlights that healthy reserves boost investor confidence and ensure India’s ability to support imports over the long term. On the India–U.S. trade standoff, she remains optimistic, expecting a new trade policy within the next one to two months. While current tariffs may hurt exporters and MSMEs in the short term, she believes both nations will resolve tensions quickly, given their decades-long strategic and economic partnership.