India’s Forex Reserves Cross $700 Billion Mark for the First Time
In a historic achievement, India’s foreign exchange reserves surpassed the $700 billion mark for the first time in September 2024, according to data released by the Reserve Bank of India (RBI) on October 4, 2024. The reserves, currently standing at $704.88 billion, saw a significant weekly increase of $12.58 billion and have grown by $58.47 billion since March 2024.
This remarkable growth is primarily driven by $30 billion in foreign inflows this year, largely due to investments in local bonds following India’s inclusion in a major J.P. Morgan index. The growing reserves have placed India among the exclusive group of countries, including China, Japan, and Switzerland, with forex reserves exceeding $700 billion.
RBI Governor Shaktikanta Das has consistently emphasized the importance of building a substantial foreign exchange buffer to mitigate risks during periods of market volatility. According to forecasts by Bank of America, India’s forex reserves could reach as much as $745 billion by March 2026.
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