Foreign-exchange reserves of India

The foreign exchange reserves of India are holdings of cash, bank deposits, bonds, and other financial assets denominated in currencies other than India's national currency, the Indian rupee. The foreign-exchange reserves are managed by the Reserve Bank of India (RBI) for the Indian government, and the main component is foreign currency assets.

Foreign-exchange reserves act as the first line of defense for India in case of economic slowdown, but acquisition of reserves has its own costs.[1] Foreign exchange reserves facilitate external trade and payment and promote orderly development and maintenance of foreign exchange market in India.[2]

India's total foreign exchange (forex) reserves stand at around US$704.89 billion on 27 September 2024, with the foreign currency assets (FCA) component at around US$616 billion, gold reserves at around US$65.7 billion, special drawing rights (SDRs) with the International Monetary Fund (IMF) of around US$18.547 billion and around US$4.3 billion reserve position in the IMF, as per the RBI's weekly statistical supplement published on 08 September 2023.[3][4] The Economic Survey of India in 2014-15 stated India could target foreign exchange reserves of US$750 billion-US$1 Trillion.[5]

India's foreign exchange reserves are mainly composed of the United States Dollar in the forms of United States government bonds and institutional bonds.[6][7] with nearly 7.34% of forex reserves in gold. The FCAs also include investments in United States Treasury bonds, bonds of other selected governments and deposits with foreign central and commercial banks. As of September 2021, India holds fourth largest foreign-exchange reserves in the world following Switzerland.[8][9]

  1. ^ "Costs Involved in Increasing Forex Reserves: RBI". Archived from the original on 24 July 2022. Retrieved 8 April 2020.
  2. ^ "RBI". Archived from the original on 2 March 2021. Retrieved 14 November 2016.
  3. ^ "Reserve Bank of India – Bulletin Weekly Statistical Supplement – Extract" (PDF). 27 January 2023.
  4. ^ "India's forex reserves hit all-time high of $704.89 billion, up $12.5 billion as of Sept 27". The Economic Times. 4 October 2024. ISSN 0013-0389. Retrieved 4 October 2024.
  5. ^ "RBI Monetary Policy $1 trillion forex reserves: A pipe dream". Business Standard India. 4 April 2015. Archived from the original on 2 August 2018. Retrieved 12 May 2015.
  6. ^ "Major foreign holders of treasury securities of USA". Archived from the original on 23 November 2010. Retrieved 22 January 2021.
  7. ^ "Y V Reddy: India's foreign exchange reserves – policy, status and issues – May 10, 2002" (PDF). Archived (PDF) from the original on 12 January 2011. Retrieved 12 May 2015.
  8. ^ "Surging forex reserves to help improve economic outlook". Archived from the original on 18 May 2015. Retrieved 12 May 2015.
  9. ^ "Look How Rich India's Become Under New Prime Minister Modi". Forbes. Archived from the original on 27 August 2017. Retrieved 28 August 2017.