In the last week of October, India’s foreign exchange reserves experienced a decline, dropping by USD 6.925 billion to USD 695.355 billion, according to the Reserve Bank of India’s ‘Weekly Statistical Supplement’ report. This drop is attributed to a decrease in both foreign currency assets and gold reserves.
The country’s forex reserves remain close to the all-time high of USD 704.89 billion, reached in September 2024. The report indicates that foreign currency assets, the largest component of these reserves, were recorded at USD 566.548 billion, a decrease of USD 3.862 billion. Gold reserves fell by USD 3.010 billion to USD 105.536 billion, amid increasing global uncertainties and a surge in investment demand.
RBI Governor Sanjay Malhotra, following the latest monetary policy review, assured that the reserves are sufficient to cover over 11 months of merchandise imports. He cited India’s external sector robustness and RBI’s capability to meet external obligations. In 2023, India bolstered its reserves by USD 58 billion, a contrast to the USD 71 billion dip in 2022. For 2024, reserves saw an increment of a little over USD 20 billion. The cumulative increase for 2025 stands at approximately USD 46 billion.
(With inputs from agencies.)
