Archive · 6 Jun 2025
India's Forex Reserves Stable Amid Trade Deficit in April 2025
India's economy is doing okay.
The country has a lot of money saved up, enough to pay off almost all of its debts and cover over 11 months of imports.
In April, India bought more goods from other countries than it sold, which is called a trade deficit.
However, money coming in from services and other sources helps balance this.
Foreign companies are also investing more money in India.
This shows India's economy is attractive to international investors.
Most FDI came from Singapore, and Maharashtra got the most investment.
India's forex reserves cover 96% of external debt and 11 months of imports.
The trade deficit grew to USD 8.65 billion in April.
Total exports increased by 12.7% year-on-year to USD 73.80 billion in April.
Gross FDI inflows rose by 14% in FY2024-25 to USD 81.04 billion.
Maharashtra attracted the highest FDI equity inflows with a 39% share.
- Who
- RBI Governor Sanjay Malhotra and investors
- What
- India's external sector performance, trade dynamics, and investment inflows
- When
- April 2025 (for trade data); May 30, 2025 (for forex reserves data)
- Where
- India
- Why
- To assess the health of India's economy.
- Forex Reserves (May 30, 2025)
- USD 691.5 billion
- Forex Reserves cover of External Debt
- 96%
- Forex Reserves funding of Import Goods
- 11 months
- Trade Deficit (April)
- USD 8.65 billion
- Merchandise Exports (April)
- USD 38.49 billion
- Merchandise Imports (April)
- USD 64.91 billion
- Gross FDI Inflows (FY2024-25)
- USD 81.04 billion
- FDI Growth (FY2024-25)
- 14%
- Maharashtra's FDI Share (FY2024-25)
- 39%
- Singapore's FDI Share
- 30%
