00:00India's current account deficit moderated in Q1 this year to 2.4 billion US dollars or 0.2%
00:12of GDP. This is in comparison to 8.6 billion US dollars or 0.9% of GDP same period last year on
00:24account of an increased net services surplus and strong remittance receipts despite higher
00:33merchandise trade deficit. During July and August 2025 for which we have data till now,
00:41merchandise trade deficit continued to remain elevated. Notwithstanding rising global trade
00:49uncertainties, India's services exports driven by software and business services witnessed robust
00:57growth in the last two months July and August. Furthermore, robust services exports coupled with
01:06strong remittance receipts is expected to keep the current account deficit sustainable during this year.
01:14On the external financing side, net FDI reached a 38-month high in July this year, driven by
01:25increased gross FDI and a moderation in repatriation and outward FDI. Net FDI, however, recorded
01:36outflows of 3.9 billion US dollars. This year, so far, we have data till September 29. This is on account of
01:47both equity and debt segment outflows. As on September 26, this year, India's foreign exchange reserves
02:00stood at a healthy 700.2 US billion dollars, sufficient to cover more than 11 months of our merchandise imports.
02:14Overall, India's external sector continues to be resilient and we remain confident of meeting our external
02:22obligations comfortably. Notwithstanding the robust domestic macroeconomic fundamentals, the Rupee has
02:32witnessed some depreciation accompanied by phases of volatility. We are keeping a close watch on the
02:42movements of the Rupee and will take appropriate steps as warranted.
02:47Now, I have three proposals for internationalization of the Indian Rupee. We have been making
02:59steady progress in this regard. The first proposal relates to permit 80 banks to lend in Indian Rupees to
03:09non-residents from three countries Bhutan, Nepal and Sri Lanka for cross-border trade
03:17transactions. Second, to establish transparent reference rates for currencies of India's major trading
03:27partners to facilitate Rupee based transactions. And third, permit wider use of SRVA balances by making them
03:39eligible for investments in corporate bonds and commercial papers also.
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