India’s foreign exchange reserves increased by $1.49 billion to reach $695.11 billion for the week ended August 15, according to data released by the Reserve Bank of India. This follows a sharp $4.75 billion jump in the previous week, taking the reserves to $693.62 billion and reflecting the country’s stable external balance position.
Foreign currency assets, the largest component of the reserves, rose by $1.92 billion to $585.9 billion during the week. These assets, expressed in US dollar terms, include the impact of changes in the value of other major currencies such as the euro, pound and yen held in the reserves. The gold component stood at $85.67 billion, with the RBI’s gold holdings as a share of total reserves having nearly doubled since 2021 as central banks worldwide increased gold accumulation amid geopolitical uncertainty. Special drawing rights were valued at $18.78 billion.
The RBI has said the current level of reserves is sufficient to cover more than 11 months of goods imports and about 96 per cent of the country’s outstanding external debt. RBI Governor Sanjay Malhotra stated that India’s external sector remains resilient, with key vulnerability indicators continuing to improve, and expressed confidence in meeting external financing requirements.
Official trade data showed merchandise exports in July rising 7.29 per cent to $37.24 billion from $34.71 billion in the same month last year. Commerce Secretary Sunil Barthwal said India’s services and merchandise exports in July and in the current financial year so far have grown substantially, outpacing global export growth. He identified engineering goods, electronics, pharmaceuticals, chemicals, and gems and jewellery as the main drivers of goods exports during the month.
