India's import cover improves to 10 months in June 2019, says RBI report

India’s import cover improved to 10 months at the end of June 2019, from 9.6 months at end-March, as the country’s foreign exchange reserves increased to $429.84 billion, from $412.87 billion in the same period, the Reserve Bank of India (RBI) said in its half yearly report on foreign exchange reserves. 

On a balance of payments basis, the foreign exchange reserves increased by $14.0 billion during April-June 2019 as against a decrease of $ 11.3 billion during April-June 2018. 

The import cover has likely improved even more by now, as the country’s reserves stood at $454.5 billion by December 13. In the same period, the ratio of short-term debt to reserves, which was 26.3 per cent at end-March 2019, declined to 25.5 per cent at end-June 2019.