How long can India’s current foreign exchange reserves cover its external payments ?

(a) 2 months

(b) 4 months

(c) 6 months

(d) 7.1 months

Ans.(d)

Sol. India’s foreign-exchange reserves provide a cushion to manage external financial volatility and were at USD584.2 billion (7.1 months of current external payments) as of 21 April 2023.