Forex cover for imports may fall to lowest this year under Modi govt

There could be $27.7 billion dollars of withdrawals in the next five months

If the finance ministry's assessment that there will be a drawdown of $45-50 billion from foreign exchange reserves in this financial year comes true, reserves at the end of the year would provide cover for around eight months. This import cover of foreign exchange reserves may be the lowest under the Narendra Modi government or the lowest in nine years.

Economic Times reported on Wednesday that the country's balance of payments is likely to slip into a $45-50 billion deficit in the current financial year.

India saw accretion of $4.6 billion to the forex reserves on the balance of