India on firm ground, but severe conditions may hit outlook: S&P

Foreign exchange reserves have dropped to about $533 billion from a peak of about $634 billion in 2021, in part because of the growing current account deficit that S&P says will jump to 3% of GDP in the current fiscal year from 1.6% in the preceding fiscal. S&P expects commodity prices, particularly for energy, to stabilise around current levels through 2023, after which they may decline more meaningfully, which would help moderate the current account deficit.