During an event in New York, Reserve Bank of India Governor Sanjay Malhotra reassured that India's domestic inflation and external debt are well within target levels, despite external pressures such as the West Asia conflict that has led to soaring crude oil prices. He highlighted India's robust foreign exchange reserves, which are approximately $700 billion, sufficient to cover about 11 months of goods imports and 92% of the external debt outstanding as of December 2025. The RBI intervened in the foreign exchange market to stabilize the rupee following pressures from the crisis. Malhotra also pointed out India's commitment to regulatory reforms and enhancing access for foreign investors, as evidenced by the conclusion of eight Free Trade Agreements (FTAs) with 37 countries. He noted that the Consumer Price Index (CPI) headline inflation rose to 3.4% in March from 3.2% in February, primarily due to increases in food and fuel prices, while core inflation remained stable. The RBI's target is to maintain headline inflation at 4% with a permissible variation of 2% on either side.