“Everything Is Fine, Says The RBI. So Why The Emergency Measures?“, Swarajya, Aug 07, 2026.
“Borrowed calm? Six months ago India held $700 billion in reserves against $700 billion of external debt. In three months it will hold $600 billion against $850 billion, and that swap is what is holding the rupee at 95.
The number everyone fears is $330 billion. It is also the wrong number.
That figure is the goods trade deficit, and it has become the standard proof that India is in trouble. India exports around $440 billion in goods and imports close to $800 billion, so the gap is genuine. Goods are one column in a wider account. Add the rest and the picture inverts. India ran a current account surplus in the last quarter of the previous financial year. The country is not living beyond its means.
This article is produced based on the latest episode of What This Means where we speak with Professor Prasanna Tantri, Associate Professor of Finance at the Indian School of Business on how the RBI is holding the rupee steady by inviting in short-term money it will have to repay in two-three years, and why that trade looks like emergency medicine for a patient that is not sick………..”
Read the full article at Swarjya.
