MUMBAI– India’s foreign exchange reserves rose by $2.7 billion to $698.19 billion for the week ending July 25, according to data released by the Reserve Bank of India (RBI) on Friday.
The increase was driven primarily by a $1.31 billion gain in foreign currency assets, which now stand at $588.93 billion. These assets, valued in U.S. dollars, reflect changes in the valuation of other major global currencies like the euro, pound, and yen.
Gold reserves also boosted the overall rise, climbing by $1.2 billion to $85.7 billion. Additionally, India’s special drawing rights (SDRs) with the International Monetary Fund (IMF) rose by $126 million to $18.8 billion, while its reserve position with the IMF improved by $55 million to $4.75 billion.
The RBI frequently intervenes in the forex market to manage liquidity and curb sharp volatility in the rupee, aiming to maintain orderly market conditions rather than target specific exchange rates.
According to the RBI’s latest monthly bulletin, gross foreign direct investment (FDI) inflows surged to $8.8 billion in April 2025, up from $5.9 billion in March and $7.2 billion in April 2024. Nearly 50% of these investments came from the manufacturing and business services sectors.
India also ranked 16th globally for FDI inflows and attracted $114 billion in greenfield investments in the digital economy between 2020 and 2024—the highest among countries in the Global South.
Foreign portfolio investment (FPI) inflows remained strong as well, with net investments of $1.7 billion in May 2025, primarily into equities. This marked the third consecutive month of gains for Indian equities, fueled by positive global and domestic developments including the India-Pakistan ceasefire, the U.S.-China trade truce, and better-than-expected Q4 2024–25 corporate earnings. (Source: IANS)
