According to RBI's July bulletin, India's external sector remained resilient, backed by ample foreign exchange reserves and a moderate external debt-to-GDP ratio. As on July 11, 2025, India's foreign exchange reserves stood at US$696.7 billion, providing a cover for more than 11 months of goods imports and for 95 per cent of the external debt outstanding at end March 2025, the central bank noted. Meanwhile, India's external debt rose by US$ 67.5 billion from end-March 2024 to US$ 736.3 billion at end March 2025, with the external debt-to-GDP ratio increasing marginally to 19.1 per cent from 18.5 per cent a year ago. Also, India's key external vulnerability indicators fared well relative to other large emerging markets, RBI said.

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