India's Macroeconomic Fundamentals
Key Buffers
The FSR's conclusion that India has "ample buffers" rests on several macroeconomic anchors that have strengthened over recent years.
- Forex Reserves: India's foreign exchange reserves stood at approximately $671.6 billion as of mid-June 2026 — among the largest in the world and sufficient to cover over 10 months of imports. These reserves provide a direct buffer against currency volatility from capital outflows.
- Current Account: India's current account deficit (CAD) narrowed to 1.3% of GDP in Q2 FY26 (Jul–Sep 2025), and India recorded a current account surplus of $7.1 billion in Q4 FY26 — an unusually strong position that reduces external financing risk.
- Banking Sector Health: Scheduled commercial banks show strong capital adequacy ratios, declining gross NPA ratios, and stable net interest margins — a significant improvement from the stress period of 2016–2020.
- NBFC Sector: Characterised by strong capitalisation, healthy profitability, and improving asset quality as per the FSR.
● Tracked since April 08, 2026 · last seen June 30, 2026 · updates as the daily brief publishes
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