New Delhi. There have been two big positive news for India’s economy this week. Firstly, the country’s foreign exchange reserves have strengthened again and secondly, India has seen a record FDI this year. This trend shows that India is not only attracting foreign capital, but investor confidence is also continuously increasing. India’s performance amid global uncertainties makes it one of the most reliable investment destinations in the world.
Latest figures from RBI and Commerce Ministry show that there has been a strong increase in India’s Forex Reserve, Gold Reserve and Special Drawing Rights. Also, the flow of foreign investment is increasing faster than in previous financial years. According to the government, the policy of FTA and trade diversification is a major reason for this.
Increase in forex reserves by $ 1.03 billion
The Reserve Bank of India said that in the week ending December 5, India’s forex reserves increased by $ 1.03 billion to reach $ 687.26 billion. With this increase, India is maintaining its strong position among the countries with the largest foreign exchange reserves in the world. Gold reserves also increased by $ 1.188 billion this week and the total gold reserve reached $ 106.984 billion. According to RBI, an increase of $ 93 million was also recorded in special drawing rights and it increased to $ 18.721 billion. RBI reiterated that it continuously monitors the fluctuations in the foreign exchange market and intervenes when necessary so that the country’s trade and currency balance remains stable.
Record jump in FDI
This year India has registered a strong increase in FDI. According to the information given by the government in Parliament, the total FDI inflow into India during the first half of the financial year 2025-26 i.e. April to September 2025 was $ 50.36 billion. This is 16 percent more than $43.37 billion in the same period last year and is the highest figure so far in the first half of any financial year.
Minister of State for Commerce and Industry Jitin Prasad told the Lok Sabha that India’s total FDI inflow in 2012-13 was a little more than $34 billion, while in 2024-25 it will increase to above $80 billion. This shows that investor confidence in India has increased manifold in the last decade.
According to official data, the trend of FDI remained very strong in the second quarter of financial year 2025 also. During April to September 2025, total FDI jumped by 18 percent to reach $35.18 billion. According to the Union Minister, this increase in net FDI inflow is due to increasing investment of Indian companies in foreign markets, global partnerships and reinvestment.
Why is foreign investment increasing in India?
The government’s promotion of business diversification and use of free trade agreements is a major reason for this growth. India has so far signed 15 Free Trade Agreements and 6 Preferential Trade Agreements, which has made trade and investment easier with many countries. Through FTA, India is promoting manufacturing, strengthening the supply chain and encouraging big companies to create an export base from here. For this reason, India is being considered a safe, stable and fast growing economy for investment.
Benefits of increasing forex reserves
When a country’s foreign exchange reserves increase, it strengthens its economic stability. This reserve helps in easily managing international transactions, such as imports and exports, and protects against currency fluctuations. Furthermore, strong forex reserves increase investor confidence and attract foreign investment. Having high reserves gives the country the ability to continue its economic programs and development projects even in times of financial crisis or global economic fluctuations. Also, due to increase in reserves, central and state governments can take cheaper loans, and the value of the rupee remains stable, which has a positive impact on inflation and international trade.
