India's foreign exchange reserves rose to a record $725.727 billion

India's foreign exchange reserves rose to a record $725.727 billion

¨     India’s foreign exchange reserves were reported by the Reserve Bank of India to have surged by $8.663 billion to an all-time high of $725.727 billion for the week ended February 13.

¨     The sharp increase was recorded after reserves had declined by $6.711 billion in the previous week due to falling gold prices.

¨     The latest rise was driven by gains across key reserve components.

¨     Gold reserves were increased by $4.990 billion to reach $128.466 billion during the reporting week.

¨     Foreign Currency Assets, the largest component of reserves, rose by $3.550 billion to $573.603 billion.

¨     FCA comprises major global currencies such as the US dollar, euro, yen and pound expressed in dollar terms.

¨     Special Drawing Rights (SDRs) increased by $103 million to $18.924 billion, while India’s reserve position with the IMF rose by $19 million to $4.734 billion.

¨     Strong forex reserves provide a key indicator of the country’s economic strength and external sector stability.

¨     The reserves enable the central bank to intervene in currency markets to prevent excessive depreciation of the rupee.

¨     Significantly, according to the Economic Survey 2025-26, the country remains the largest recipient of remittances in the world, with inflows of $135.4 billion in FY25, maintaining stability in the external account.

¨     Despite the deteriorating global financial situation, India has consistently attracted large gross investment inflows, which amounted to 18.5% of GDP in FY25.