India’s foreign exchange reserves rose sharply to a record $725.727 billion in the week ended 13 February, reflecting stronger external buffers and improved financial stability. The increase came after a fall in the previous week, when reserves had slipped due to weaker gold prices. The latest rise was driven mainly by higher gold holdings and foreign currency assets.
Record Rise in Reserves
India’s forex reserves increased by $8.663 billion in one week. This took the total to an all-time high of $725.727 billion. Such reserves are a key indicator of a country’s ability to meet external payment obligations and manage currency volatility.
Gold and Currency Assets Boost
- Gold reserves rose by $4.990 billion to $128.466 billion.
- Foreign Currency Assets increased by $3.550 billion to $573.603 billion.
- FCA includes major currencies such as the US dollar, euro, yen and pound, valued in dollar terms.
- Special Drawing Rights rose by $103 million to $18.924 billion.
- India’s reserve position with the IMF increased by $19 million to $4.734 billion.
Why Forex Reserves Matter
Forex reserves help the central bank support the rupee during periods of pressure. They can be used to smooth sharp exchange rate movements and improve confidence in the economy. Higher reserves also signal stronger dollar inflows and better capacity to finance imports and external liabilities.
External Sector Support
India continues to benefit from large remittance inflows and steady investment flows. Remittances reached $135.4 billion in FY25, while gross investment inflows stood at 18.5% of GDP in the same year. These trends support the external account and strengthen reserve accumulation.
Last Modified: April 28, 2026