Publication

In addition to addressing the issues of reserve adequacy, this paper examines the forms the reserves have taken (asset and currency composition), and the extent to which India's reserve holdings are diversified. In order to assess the adequacy of India's stock of international reserves, the paper considers a few such standard measures such as the ratio of reserves-to-GDP, reserves-to-imports, reserves-to-short-term external debt and reserves-to-broad money (M2) and finds that India's reserve stock is more than adequate, placing them in a much better position than many other emerging economies.