Mumbai– India’s foreign exchange reserves surged to $688.13 billion as of April 25, marking the eighth consecutive week of gains, according to the latest data released by the Reserve Bank of India (RBI) on Friday. The reserves rose by $1.98 billion during the week, underscoring continued strength in the country’s external sector.
The increase was driven primarily by a $2.17 billion rise in the foreign currency assets component, which now stands at $580.66 billion. However, gold reserves dipped by $207 million to $84.37 billion, while Special Drawing Rights (SDRs) rose slightly by $21 million to $18.59 billion.
This upward momentum in reserves reverses the declining trend seen in previous months, which was largely attributed to revaluation effects and RBI interventions aimed at curbing volatility in the rupee.
India’s forex reserves had previously reached an all-time high of $704.89 billion in September 2024. A growing forex cushion strengthens the RBI’s ability to stabilize the rupee during periods of market turbulence by intervening in the spot and forward currency markets.
“A strong foreign exchange reserve position reflects healthy economic fundamentals and gives the central bank critical room to maneuver during currency fluctuations,” said a senior RBI official.
Meanwhile, India’s external sector continues to show resilience despite global uncertainties. Total exports for the financial year 2024–25 hit a record $824.9 billion, registering a 6.01% increase from $778.1 billion in the previous year.
The growth was led by a sharp rise in services exports, which reached an all-time high of $387.5 billion — up 13.6% from $341.1 billion in 2023–24. In March alone, services exports stood at $35.6 billion, reflecting an 18.6% year-on-year growth.
Non-petroleum merchandise exports also posted a strong performance, hitting a record $374.1 billion for the fiscal year — a 6% increase from $352.9 billion in 2023–24.
The combined strength in exports and rising reserves reflects India’s improving macroeconomic stability, positioning the country favorably amid continued global trade headwinds. (Source: IANS)
