New Delhi
India’s foreign exchange reserves surged by USD 2.294 billion, reaching USD 698.95 billion for the week ending June 13, 2025, according to data released by the Reserve Bank of India (RBI). This brings the reserves just shy of the all-time high of USD 704.89 billion recorded in September 2024.
At the recent monetary policy meeting, RBI Governor Sanjay Malhotra noted that the current forex reserves are sufficient to cover 11 months of imports and around 96% of the country’s external debt. The healthy reserves position strengthens India’s financial stability amid global economic uncertainty.
The largest component, foreign currency assets (FCA), stood at USD 589.43 billion, while gold reserves were valued at USD 86.32 billion. Notably, the share of gold in India’s forex basket has nearly doubled since 2021, reflecting a global trend of central banks increasingly including safe-haven assets like gold in their holdings.
In contrast to a steep decline of USD 71 billion in 2022, India added USD 58 billion to its reserves in 2023, followed by a further increase of over USD 20 billion in 2024. The RBI actively manages the reserves to stabilize the rupee, buying dollars when the rupee strengthens and selling during depreciation to curb volatility.
Foreign exchange reserves are key macroeconomic indicators, comprising assets held by a nation’s central bank in reserve currencies such as the US dollar, euro, yen, and pound sterling. The continued growth in reserves signals resilience in India’s external sector and offers a strong buffer against potential global financial shocks.