India's external sector placed comfortably, Forex reserves cover over 11 months of imports

Economic Survey has stated Indias external sector is placed comfortably in the short run. Forex reserves cover over 11 months of imports as of 16 January 2026 and approximately 94.0 per cent of the external debt outstanding as of the end of September 2025, offering a comfortable liquidity cushion. The pursuit of a diversified trade strategy, as evidenced by the signing of trade agreements with the UK, Oman, and New Zealand and the EU, and active negotiations with US, bodes well for Indias exports. However, global developments are complicating the outlook in the medium term. A proliferation of immigration controls across countries typically favoured by Indian emigrants may cap the growth in remittances. Global trade is being increasingly influenced by geopolitical alignments and economic statecraft, which in turn may impact Indias exports.

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