India Reserves to Shield Economy in Turmoil, MPC Member Says

India’s $700 billion in foreign exchange reserves gives the economy a crucial cushion against rising geopolitical turmoil, a member of India’s rate-setting panel said, as hostilities in the Middle East continue to deepen.

Ram Singh, an external member of the monetary policy committee with the Reserve Bank of India, said in an interview with The Economic Times newspaper that he expects the country’s foreign-exchange buffer to help blunt the impact of inflation caused by rising crude and fertilizer prices.