India is demonstrating impressive resilience in the face of global challenges, maintaining a robust growth trajectory supported by sound policy measures and a vigilant monetary stance, industry experts reported on Saturday.
Recent data from the Reserve Bank of India (RBI) reveals that the country’s foreign exchange reserves surged by $5.16 billion, reaching a historic high of $657.16 billion for the week ending 5 July.
This substantial increase is likely to propel India’s economic growth to new heights and enhance its global standing.
“This rise in forex reserves will significantly boost India’s attractiveness on the world stage, benefiting domestic trade and industry,” stated Shri Sanjeev Agrawal, President of the PHD Chamber of Commerce and Industry (PHDCCI).
Experts highlight that India’s robust foreign exchange reserves provide the central bank with increased flexibility to manage the currency and monetary policy amid shifting geopolitical landscapes and macroeconomic challenges.
Amit Goel, Co-founder and Chief Global Strategist at Pace 360, noted that the RBI has been strategically using its reserves to mitigate currency volatility.
“The Indian rupee has emerged as one of the strongest currencies in Asia this year. The central bank is likely to continue building reserves opportunistically to stabilize the market,” Goel added.
A strong forex reserve however empowers the RBI to intervene effectively in currency markets, enabling it to release dollars to prevent the rupee from depreciating sharply.
Meanwhile, RBI Governor Shaktikanta Das has emphasized the resilience of India’s external sector, expressing confidence in the central bank’s ability to meet the country’s external financing needs comfortably.
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