Last Updated:
India’s Foreign Exchange Reserves: India’s foreign exchange reserves have once again seen a strong increase. Forex reserves increased by $5.54 billion in the week ending November 14, the biggest contribution of which came from the increase in the value of gold reserves. Latest RBI figures show that India’s external sector is in a stronger position than before.
New Delhi. According to new data released by the Reserve Bank of India (RBI), India’s foreign exchange reserves have increased by $ 5.54 billion to $ 692.58 billion in the week of November 14. This increase was mainly recorded due to increase in the value of gold component, which jumped by $ 5.34 billion to reach $ 106.86 billion. The sharp rise in gold prices in the global market has further strengthened this increase. The value of gold is determined according to international prices, hence this increase in forex reserves is also a sign of the strength of global markets.
Increase in foreign currency assets and SDR also
The latest data shows that the largest segment of forex reserves – foreign currency assets – rose by $152 million to $562.29 billion. At the same time, Special Drawing Rights (SDR) also increased by $ 56 million to reach $ 18.65 billion. India’s reserves with the International Monetary Fund (IMF) have increased by $8 million to $4.78 billion. It is clear from all these indications that India is in a position to comfortably meet its external financial needs.
RBI said- Forex reserve is ‘quite strong’
RBI Governor Sanjay Malhotra said that India’s foreign exchange reserve position is very strong and it is enough to cover 11 months of imports. Besides, it can easily fund 96 percent of the country’s external debt. He said that India’s external sector is stable and secure, which stands strong even amidst global economic challenges. Market experts believe that the share of gold in the forex reserves has almost doubled in the last 10 years – which was earlier less than 7 percent, it has now reached about 15 percent.
Tremendous rise in gold prices in 2025
According to market analysts, a 65 percent jump has been seen in gold prices so far in 2025. Amidst Middle East tensions, US tariff increase and global uncertainties, gold is being considered the safest investment option. This increasing demand has led to a strong increase in both India’s gold reserves and foreign exchange reserves. Analysts believe that if this trend continues, India’s forex reserves may touch new record highs in the coming months.
