External debt and inflation within target: RBI governor Sanjay Malhotra
Mumbai, Apr 23, 2026
Malhotra further highlighted India's continued commitment to regulatory reforms and enhanced ease of access and operations for foreign investors
Reserve Bank of India Governor Sanjay Malhotra assured that domestic inflation and India’s external debt position remained well within target levels despite global shocks caused by the West Asia conflict, which has sent crude oil prices soaring.
Speaking at an event hosted by the Consulate General of India in New York, Malhotra highlighted India’s strong macroeconomic fundamentals, robust policy frameworks, and the steady rise of its financial markets, noting foreign exchange reserves of around $700 billion, the RBI said in an X post.
India’s foreign exchange reserves provided cover for goods imports of around 11 months and around 92 per cent of the external debt outstanding as at end-December 2025.
With the rupee coming under pressure in March following the West Asia crisis, the central bank intervened heavily in the foreign exchange market by selling dollars to curb volatility. The RBI, however, has maintained that India’s foreign exchange reserves remained comfortable.
Malhotra further highlighted India’s continued commitment to regulatory reforms and enhanced ease of access and operations for foreign investors.
“He emphasised that inflation and external debt remain well within target levels despite global shocks, reflecting the resilience of India’s economic management,” the RBI post said.
Malhotra underscored India’s expanding global economic engagement, including the conclusion of eight FTAs covering 37 countries, and the growing depth of government and corporate bond markets.
The event was attended by investors, senior banking officials, and industry leaders.
“India’s strong fundamentals, resilient financial sector, and forward-looking reforms continue to reinforce global investor confidence in the India growth story,” the post added.
CPI headline inflation increased to 3.4 per cent in March from 3.2 per cent in February, mainly on account of higher food and fuel inflation. Core (CPI inflation excluding food and fuel) remained stable. The target for RBI is to maintain headline inflation at 4 per cent with 2 per cent variation on either side.
[The Business Standard]
