India’s foreign exchange reserves soared by $14.361 billion in the week ending January 30, touching an unprecedented peak of $723.774 billion, as per data disclosed by the Reserve Bank of India (RBI) on Friday.
During the previous week, the reserves had surged by $8.053 billion, with the increase primarily linked to the escalation in gold prices.
The value of gold reserves, a significant element of the foreign exchange reserves, rose by $14.595 billion to $137.683 billion in the week concluding January 30.
The Foreign Currency Assets (FCA), the primary component of the reserves, saw a decline of $493 million, settling at $562.392 billion. FCA encompasses major global currencies like the yen, euro, and pound, alongside the dollar, with their value denominated in US dollars.
The Special Drawing Rights (SDRs) value surged by $216 million to $18.953 billion, while India’s reserve position with the IMF climbed by $44 million to $4.746 billion by January 30.
India retained its position as the world’s largest recipient of remittances, with inflows hitting $135.4 billion in FY25, aiding in stabilizing the external account, as per the Economic Survey 2025-26.
India attracted substantial gross investment inflows, equivalent to 18.5% of GDP in FY25, despite global financial conditions tightening.
Reports suggest that the potential India-US trade agreement bodes well for India’s medium-term growth and external stability, with enhanced market access and tariff predictability expected to bolster exports, encourage manufacturing investments, and increase foreign direct investment (FDI) inflows, particularly benefiting export-oriented sectors with significant exposure to the US market.
