India's foreign exchange reserves have seen a significant decline of $30.5 billion since the onset of the West Asia conflict in late February, driven by the Reserve Bank of India's (RBI) efforts to stabilize the rupee, which depreciated over 4% against the US dollar in March. As of March 27, total reserves stood at $688.05 billion, down $10.28 billion from the previous week, primarily due to a reduction in foreign currency assets and gold reserves. Foreign currency assets fell by $6.62 billion, while gold reserves decreased by $3.66 billion. Despite the drop, the reserves still provide an import cover of 11 months; however, accounting for the RBI's forward dollar position, this cover reduces to 9 months. The RBI's net short dollar position in the rupee forward market reached $77.25 billion, the highest since March 2025, raising concerns about the resilience of India's forex reserves amid ongoing geopolitical tensions.