Forex reserves can cover 90% of external debt
India’s foreign exchange reserves, amounting to $640.3 billion by the end of December 2024, can comfortably cover 90% of the country’s external debt and nearly 11 months of imports. Despite a recent dip, India remains the world’s fourth-largest holder of foreign exchange reserves, following China, Japan, and Switzerland.
Any correction in US may have a cascading effect on markets here
Linkages between the two markets are more pronounced in a downturn, but that may not be the case when the market is on a strong footing. In 51 instances, when the Nifty dropped over 10%, the S&P 500 notched up gains on 13 instances.