India’s foreign exchange reserves have continued their upward climb, reaching $688.13 billion as of April 25, according to the latest figures released by the Reserve Bank of India (RBI) on Friday. This marks the eighth consecutive week of growth, with the reserves increasing by $1.98 billion during the past week.
The foreign currency asset component of the reserves recorded a significant rise of $2.17 billion, bringing the total to $580.66 billion. Meanwhile, the gold reserves dipped by $207 million to stand at $84.37 billion. Special Drawing Rights (SDR) also experienced a modest uptick of $21 million, settling at $18.59 billion.
After months of volatility caused by revaluation adjustments and the RBI’s interventions in the forex market to curb fluctuations in the rupee, the trend has now reversed. This renewed accumulation of reserves strengthens India’s financial stability, giving the central bank greater maneuverability to manage currency fluctuations and support the rupee when necessary.
In September 2024, India’s foreign exchange reserves had reached an all-time high of $704.88 billion before experiencing declines due to global economic shifts and market interventions. The latest resurgence in reserves signals robust macroeconomic fundamentals and strengthens India’s external position. A rising foreign exchange reserve improves confidence in the rupee and enhances the RBI’s ability to intervene in spot and forward markets to prevent excessive depreciation.
Beyond the forex market, India’s external sector continues to demonstrate resilience. Total exports rose to a record high of $824.9 billion in the financial year 2024–25, despite global trade uncertainties and geopolitical disruptions. This represents a 6.01 percent increase from the previous year’s export figure of $778.1 billion. Services exports remained a key driver of this growth, reaching $387.5 billion in 2024–25—an impressive 13.6 percent rise from $341.1 billion in the preceding year. For March 2025 alone, services exports stood at $35.6 billion, reflecting a robust year-on-year growth rate of 18.6 percent.
Merchandise exports, excluding petroleum products, hit an all-time high of $374.1 billion in the latest fiscal year, marking a 6 percent jump from $352.9 billion recorded in 2023–24. This strong export performance underscores India’s growing presence in global trade and reinforces the economy’s ability to withstand external shocks.
The upward trajectory of India’s forex reserves and export growth reflects the country’s sound economic fundamentals, bolstered by strong trade activity and prudent financial management. With a healthier foreign exchange buffer, the RBI is well-positioned to stabilize the rupee and maintain stability in the financial markets, reinforcing India’s role as a resilient global player.
