India maintains its international reserves near historical maximums, while its inflation falls to levels not seen since 2019, according to the latest monthly economic report published by the Ministry of Finance, corresponding to the month of May.
On June 13, 2025, the country’s foreign exchange reserves were 699,000 million dollarsa figure that “remains solid, with a coverage of more than 11.5 months of imports and 97.4% of the slope external debt at the end of December 2024 “, According to the report.
Reservations have remained around 700,000 million dollars Since September of last year, when they reached their historical maximum, according to data from the Bank of the Reserve of India (RBI).
In parallel, Retail inflation fell to 2.8% in Maymarking the seventh consecutive month of descent and the lowest level since February 2019, according to official data.
“This moderation of inflation is widespread,” says the document. Food inflation, meanwhile, He went down “in just under 1%“, The lowest record since October 2021, according to the same report.
In this context, the Bank of the Reserve of India (RBI) has adopted an expansive monetary position. In June, its monetary policy committee reduced its reference interest rate at 50 basic points, From 6% to 5.5%, its lowest level since 2022.
He also announced a gradual reduction of the coefficient of mandatory reserves between September and November, which is expected to inject Around 30,000 million dollars In liquidity to the banking system.
The Ministry of Finance said the economy maintains a sustained growth rate, with a 6.5% Estimation of GDP For fiscal year 2025-26. In addition, the formal employment generation continues upwards, with a net incorporation of 1.91 million workers in April, according to the data of the National Pension Organization (EPFO).
With these indicators, the Government is confident that the internal impulse -resposed by a contained inflation and a strong external position- support economic recovery in an international environment still marked by volatility.
