RBI Governor Sanjay Malhotra shares key insights on India’s external sector, highlighting strong FDI growth and robust forex reserves at $697 billion. While India remains an attractive investment destination, net outflows in equity segments and moderating ECB flows indicate mixed trends. The rupee has also depreciated more than usual, reflecting global uncertainties. Despite strong macroeconomic fundamentals and healthy reserve adequacy, the RBI remains cautious amid rising geopolitical and trade risks. Import cover remains stable at around 11 months, ensuring external stability. The central bank reiterates its stance-no fixed exchange rate targeting, only intervention to curb excessive volatility. Watch this quick breakdown to understand what it means for markets, investors, and the Indian economy.