India’s foreign exchange reserves have reached $705 billion, marking the fourth-largest reserve globally. This increase boosts India's economic stability and helps buffer external risks.
India's forex reserves grew from $200 billion to $300 billion in just 10 months in 2008, the fastest increase ever recorded.
India’s reserves peaked at $642 billion in September 2021 but fell to $525 billion due to revaluation losses. They have now rebounded to $705 billion.
Under RBI Governor Shaktikanta Das, India’s forex reserves saw an average increase of $4.2 billion monthly, accumulating nearly $298 billion over 70 months.
India’s robust balance of payments surplus has been a major contributor to the forex reserves build-up, according to analysts.
Stable oil prices and strong inflows into India’s stocks and bonds have further boosted reserves to $705 billion.
India’s forex reserves are projected to rise to $745 billion by March 2026, ensuring a comfortable economic cushion.