Import cover is crucial for maintaining a stable

Solution

Import cover measures how many months of imports a country's foreign exchange reserves can pay for, indicating its economic stability and ability to withstand external shocks. A higher import cover suggests a stronger economy, while a lower cover indicates potential vulnerability.  India’s import cover typically fluctuates between 8–10 months, a sign of comfortable external liquidity.  Ratios like A or D describe debt sustainability or fiscal-external linkages, not reserve adequacy.