India Should Target $1 Trillion in Reserves, Ex-RBI Deputy Says

India needs a forex reserve buffer of at least $1 trillion to ensure robust intervention capacity, according to a former central bank official.

“The level of reserves is also important from a market sensitivity point of view,” former deputy governor Michael Patra wrote in an article on BasisPoint Insight. “Punting against such a level should be beyond the reach of the opportunistic and/or the faint-hearted.”