RBI takes steps to attract foreign flows, says growth prospects stay strong

The RBI said Wednesday's measures were aimed at enhancing exchange inflows while ensuring overall macroeconomic and financial stability

The Reserve Bank of India (RBI) on Thursday announced a series of measures to attract foreign flows in a bid to protect the local currency amid depleting foreign exchange reserves. India’s foreign exchange reserves have depleted by $38 billion to below $600 billion since the Russian invasion of Ukraine late February.

While announcing the measures, the central bank said growth prospects for the Indian economy remained strong and resilient, and that despite headwinds from geopolitical developments, elevated crude oil prices, and tighter external financial conditions, high-frequency indicators pointed to an ongoing recovery in several sectors.

“Reflecting these strong fundamentals, the Indian rupee