Have India's Forex Reserves Increased by $1.03 Billion to $687.26 Billion?
Synopsis
Key Takeaways
- India's forex reserves increased by $1.03 billion to $687.26 billion.
- Gold reserves rose by $1.188 billion to $106.984 billion.
- Total FDI inflow for H1 FY 2025-26 reached $50.36 billion, a record high.
- FDI inflows have shown significant growth year-on-year.
- The government is leveraging free trade agreements to enhance investment opportunities.
New Delhi, Dec 12 (INS) India's foreign exchange reserves have risen by approximately $1.03 billion, reaching $687.26 billion for the week that ended on December 5, as reported by the Reserve Bank of India (RBI) on Friday.
The gold reserves also saw a noteworthy increase of $1.188 billion, bringing the total to $106.984 billion for the same week, according to the Central Bank. Additionally, the Special Drawing Rights (SDRs) experienced a rise of $93 million, totaling $18.721 billion.
The RBI consistently tracks the changes in the foreign exchange market and conducts interventions whenever necessary to maintain orderly trading practices.
This year, India has observed an unprecedented influx of foreign direct investment (FDI) commitments.
During the initial half of the fiscal year 2025-26, the total FDI inflow reached $50.36 billion, reflecting a 16 percent increase compared to the same period last year, which was $43.37 billion. This marks the highest ever recorded for the first half of a financial year, as noted in a report to Parliament earlier this month.
The gross FDI inflows have skyrocketed from over $34 billion in 2012-13 to more than $80 billion in 2024-25, as stated by the Minister of State for Commerce and Industry, Jitin Prasada, in the Lok Sabha.
Official statistics reveal a robust rebound in FDI during the second quarter of the ongoing financial year, with total inflows surging more than 18 percent year-on-year, amounting to $35.18 billion from April to September 2025.
Prasada highlighted that the recent trends in net FDI inflows correlate with increased repatriation and disinvestment, alongside growing Overseas Direct Investment (ODI) outflows. The ODI outflow, facilitated by liberalized ODI rules introduced in 2022, is empowering Indian firms to expand their presence internationally, thereby enabling them to compete in the global market and fortifying the Indian economy in the long run.
The rising trend in repatriation signifies that India is not only attracting foreign capital but also providing substantial returns, bolstering its status as a trustworthy investment hub. The government has effectively utilized free trade agreements to promote export diversification and attract investments. To date, India has entered into 15 free trade agreements (FTAs) and 6 preferential trade agreements (PTAs) with its trading partners.