India Achieves Record Forex Reserves of $728.49 Billion
Synopsis
India's foreign exchange reserves have skyrocketed to a historic high of $728.49 billion, driven by significant increases in both foreign currency assets and gold reserves. This milestone grants the RBI greater capacity to stabilize the rupee and navigate economic challenges.
Key Takeaways
India's forex reserves reached $728.49 billion.
Gold reserves increased significantly, now valued at $131.63 billion.
RBI's forex reserves provide stability for the rupee.
Current account deficit is at $13.2 billion, showing a widening trend.
Services exports are on the rise, contributing to economic growth.
Mumbai, March 6 (NationPress) India's foreign exchange reserves have reached a record high, surging by $4.885 billion to an unprecedented $728.494 billion for the week ending February 27, as reported by the Reserve Bank of India (RBI) on Friday.
The previous peak for the nation's forex reserves was $725.727 billion, recorded in mid-February.
During this week, foreign currency assets, which form a key part of the reserves, were valued at $573.125 billion. These assets are influenced by the fluctuations in the value of non-US currencies such as the euro, pound, and yen.
The gold portion of the forex reserves has also grown significantly, increasing by more than $4.141 billion to $131.63 billion as of February 27.
Globally, central banks have been stockpiling gold as a safe-haven asset amid rising geopolitical uncertainty. Since 2021, the Reserve Bank of India’s (RBI) gold reserves have nearly doubled.
Since 2024, the RBI has added about 75 tonnes to its gold reserves, now totaling 880 tonnes, making up approximately 14 percent of India’s overall foreign exchange reserves, according to a report by Morgan Stanley.
The special drawing rights component of the reserves is currently at $18.866 billion, reflecting a $26 million increase from the previous week.
Growth in the country’s forex reserves provides the RBI with more flexibility to support the rupee against the US dollar. Sufficient forex reserves empower the RBI to intervene in both the spot and forward currency markets by releasing additional dollars, thereby preventing significant depreciation of the rupee and reducing volatility.
In other economic news, India’s current account deficit (CAD) was recorded at $13.2 billion, or 1.3 percent of GDP, for the third quarter (October–December) of the financial year 2025–26, according to preliminary data released by the RBI.
In the same quarter of the previous financial year, the deficit was $11.3 billion, or 1.1 percent of GDP.
The merchandise trade deficit widened to $93.6 billion in Q3FY26 from $79.3 billion a year prior. Despite this, there was a notable increase in services exports and remittances from Indians working abroad during the quarter.
Net receipts from services rose to $57.5 billion in Q3FY26, up from $51.2 billion in Q3FY25. The RBI reported that services exports have seen growth in major sectors, including computer services and business services.
Remittances from Indians abroad climbed to $36.9 billion, compared to $35.1 billion the previous year.
Point of View
The rise in India's foreign exchange reserves is a positive indicator of economic strength and stability. It provides the Reserve Bank of India with crucial tools to manage currency fluctuations and support economic growth, reinforcing confidence among investors and stakeholders.
NationPress
9 May 2026
Frequently Asked Questions
What are India's current foreign exchange reserves?
India's foreign exchange reserves have reached an all-time high of $728.49 billion as of February 27.
Why is the increase in forex reserves important?
Higher forex reserves give the Reserve Bank of India more leverage to stabilize the rupee and manage currency volatility.
How much gold does the RBI hold in its reserves?
The RBI's gold reserves have increased to $131.63 billion, constituting about 14 percent of India's total forex reserves.
What was India's current account deficit in Q3FY26?
India's current account deficit stood at $13.2 billion, or 1.3 percent of GDP, in the third quarter of FY 2025-26.
How have services exports performed recently?
Net services receipts rose to $57.5 billion in Q3FY26, indicating a healthy growth in services exports.
