Business

India’s Forex Reserves Reach Five-Month High; Signals Economic Strength

India’s forex reserves have surged to $686.14 billion, the highest level since November 2024, reflecting the resilience of the Indian economy despite ongoing global challenges.

The Reserve Bank of India (RBI) reported an increase of $8.31 billion in reserves for the week ending 18 April, marking the seventh consecutive week of gains.

Steady Recovery From Previous Lows

In comparison, the reserves had risen by $1.57 billion in the preceding week ending 11 April.

India’s forex reserves have steadily recovered after dipping from their peak of $704.88 billion in September 2024.

This latest rise places the reserves just $18 billion shy of that all-time high.

Foreign Currency And Gold Holdings Increase Sharply

According to the RBI, foreign currency assets—the largest component of the reserves—rose to $578.49 billion.

Gold reserves also saw a notable jump of $4.575 billion, bringing their total value to $84.572 billion.

Also Read: Reliance Industries Q4 Net Profit Rises 6.4% As Retail And Digital Units Offset Energy Weakness

In addition, Special Drawing Rights (SDRs) increased by $212 million, now standing at $18.568 billion.

India’s reserve position with the International Monetary Fund (IMF) also edged up by $7 million, reaching $4.51 billion during the same period.

Forex Market Doubles In Size Since 2020

RBI Governor Sanjay Malhotra highlighted the transformation in India’s financial markets.

The foreign exchange market has almost doubled in size, from $32 billion in 2020 to $60 billion in 2024.

Simultaneously, average daily volumes in the overnight money markets have grown from ₹3 lakh crore to over ₹5.4 lakh crore.

G-Secs Market And Market Stability Noted

Furthermore, the government securities (G-secs) market recorded a 40% rise in average daily volumes, now reaching ₹66,000 crore.

Malhotra emphasised that all major financial segments—including Forex, G-secs, and Money Markets – have remained largely stable.

While the Indian Rupee experienced some downward pressure in recent months, it has since stabilised and regained some lost ground.

This recovery further underscores the underlying strength of India’s economic and monetary framework.

India’s rising forex reserves and expanding financial markets reflect growing investor confidence and a strong macroeconomic position.

As global uncertainties persist, these developments point to India’s increasing ability to weather external shocks and maintain financial stability.

Richa Kaushik

Recent Posts

PM Modi’s Beej Se Bazaar Tak Vision Reshapes Indian Agriculture

Prime Minister Modi has redefined Indian agriculture with the ‘Beej Se Bazaar Tak’ vision, transforming…

11 mins ago

EV Sales Cross 4% Mark In May; Signalling Steady Shift To Green Mobility

EV sales topped 4% of passenger vehicle retail in May 2025, signalling growing demand for…

31 mins ago

Self-Reliant Defence Industry Marks India’s Strategic Security Ascent

One year into Modi 3.0, reforms have reduced poverty, strengthened defence, and accelerated the digital…

48 mins ago

Survey Shows Over 88% Indians Trust PM Modi On National Interest & Security

A recent News18 survey reveals that more than 88 per cent of Indians trust Prime…

1 hour ago

PM Modi: NDA Government Has Redefined Women-Led Development Over 11 Years

Marking 11 years of the NDA govt at the Centre, PM Modi stated that women-led…

2 hours ago

Team India Begins Training In England Ahead Of Test Series Opener

Team India, led by new captain Shubman Gill, has commenced training in England ahead of…

2 hours ago