India’s Forex Market Doubles In Size As Financial Sector Shows Robust Growth: RBI Governor

India’s foreign exchange market has witnessed a remarkable expansion in recent years, with average daily turnover surging from USD 32 billion in 2020 to USD 60 billion in 2024, according to Reserve Bank of India (RBI) Governor Sanjay Malhotra.

He made this announcement during his address at the 24th FIMMDA-PDAI Annual Conference held in Bali on Friday.

Forex Turnover Nearly Doubles

Governor Malhotra underscored the impressive growth in India’s financial markets, crediting strategic reforms and growing investor confidence for the momentum.

“Over the past few years, we have witnessed significant developments that have transformed our markets into a dynamic and resilient force. The forex market alone has nearly doubled in average daily turnover,” he noted during his keynote speech.

Overnight Money Market And G-Secs Also Surge

Beyond the forex market, India’s overnight money market also recorded substantial growth.

Also Read: India’s Forex Reserves Continue Upward Trend; Rise By $1.57 Billion

The average daily trading volume rose by 80 per cent, climbing from ₹3 lakh crore in 2020 to over ₹5.4 lakh crore in 2024.

Meanwhile, the government securities (g-secs) market posted a 40 per cent increase in average daily volumes, reaching ₹66,000 crore during the same period.

Financial Markets Key To India’s Growth

Governor Malhotra stressed that robust and efficient financial markets are crucial for India’s economic aspirations.

“If India is to navigate the shifting tides and fulfil its aspirations, financial markets will have to play a crucial role,” he said, adding that these markets are not merely platforms for raising capital but are vital engines of economic growth.

Government Borrowing Completed Smoothly

Despite global uncertainties, India’s government securities market remained stable.

Malhotra highlighted that gross market borrowings by the central and state governments totalled ₹24.7 lakh crore in FY 2024–25, with the borrowing programme executed smoothly.

“The government securities market has, however, remained rock-steady throughout the year,” he added, crediting sound fiscal management and resilient market infrastructure.

India’s Market Infrastructure Matches Global Standards

In his concluding remarks, Governor Malhotra praised the progress India has made in developing a sophisticated and transparent market ecosystem.

“Motivated to fulfil the nation’s evolving needs and aspirations and guided by learnings from successive crises, our markets have matured and advanced.

Our market infrastructure is state-of-the-art. The levels of transparency are at par with the best in the world.”

Looking Ahead

With sustained policy support and ongoing reforms, India appears poised to further strengthen its position as a major global financial hub.

Governor Malhotra’s remarks reflect not only past achievements but also a vision for a resilient and forward-looking financial sector that can meet the country’s future challenges.