India's foreign exchange reserves fell $30.8bn April to December 2025
India's foreign exchange reserves dropped by $30.8 billion between April and December 2025, thanks to a bigger balance of payments deficit and large investment outflows.
The other capital deficit jumped to $22.6 billion in 2025-26, up from $7.4 billion in 2024-25, and foreign portfolio investors pulled out $16.5 billion, mostly from stocks.
March 2026 $13.1bn outflow RBI reassures
A major chunk of subsequent investment withdrawals happened in March 2026 after conflict broke out in the Middle East, leading to a swift exit of $13.1 billion.
Despite these challenges, the RBI says India's economy is holding strong with steady consumer spending and investments.
Looking ahead, things stay positive but risks remain, especially if the Middle East crisis drags on or the monsoon doesn't play nice for agriculture in 2026-27.