India’s foreign exchange reserves climb to $702.28 billion, near all-time excessive

India’s international trade reserves elevated by $4.5 billion to $702.28 billion within the week ending October 17, based on the Reserve Financial institution of India’s Weekly Statistical Complement. Officers attributed the rise largely to a better valuation of gold holdings, which have grown in worth amid a worldwide surge in demand for the metallic. The most recent stage places India’s reserves slightly below their all-time excessive of $704.89 billion reached final 12 months in September.

The central financial institution’s information confirmed that gold reserves climbed by $6.18 billion throughout the week to $108.55 billion. The soar comes at a time when worldwide gold costs have been on a gradual rise, supported by investor desire for safer property as world uncertainties persist.

However, international forex property – the most important part of whole reserves – fell by $1.69 billion to $570.41 billion. These property embody holdings in main world currencies such because the greenback, euro, pound and yen.

Exterior sector stays regular

After the latest financial coverage evaluation, RBI Governor Sanjay Malhotra stated India’s international trade reserves have been robust sufficient to cowl greater than 11 months of merchandise imports. He added that the nation’s exterior place stays secure and that the RBI is assured of assembly all exterior cost commitments with out problem.

India’s reserves have been rising steadily this 12 months, up by about $53 billion thus far in 2025. This follows a smaller achieve of simply over $20 billion in 2024 and a robust restoration in 2023, when the nation added round $58 billion after a pointy fall in 2022.

These embody foreign currency echange, gold and different property that can be utilized to settle exterior obligations or cushion in opposition to sudden capital outflows.

The regular rise in reserves indicators improved confidence in India’s financial fundamentals. Economists say the upper reserves give the nation higher room to handle exterior pressures, together with oil worth volatility or world capital actions.

With the foreign exchange stockpile now near a report excessive, India’s exterior stability seems comfortably positioned, supported by robust exports, wholesome remittance inflows and prudent administration by the RBI.