MUMBAI– India’s foreign exchange reserves rose by $1.49 billion to reach $695.11 billion for the week ending August 15, according to data released Friday by the Reserve Bank of India (RBI).
The increase follows a sharp $4.75 billion jump the previous week, underscoring the country’s strong external balance position. Rising reserves provide the RBI with greater flexibility to stabilize the rupee against the U.S. dollar by intervening in spot and forward markets to curb volatility.
During the latest reporting week, foreign currency assets — the largest component of reserves — climbed by $1.92 billion to $585.9 billion. These assets, expressed in dollar terms, reflect fluctuations in other major currencies such as the euro, pound, and yen.
India’s gold holdings within the reserves stood at $85.67 billion, highlighting a global trend in which central banks have turned to gold as a safe-haven asset amid geopolitical uncertainty. The share of gold in India’s reserve mix has nearly doubled since 2021.
The country’s reserves also include $18.78 billion in special drawing rights (SDRs). Overall, India’s forex stockpile is sufficient to cover more than 11 months of imports and nearly 96 percent of its outstanding external debt, RBI Governor Sanjay Malhotra recently said.
“India’s external sector remains resilient as key vulnerability indicators continue to improve,” Malhotra noted. “We remain confident of meeting our external financing requirements.”
Meanwhile, India’s merchandise exports recorded a 7.29 percent increase in July, rising to $37.24 billion from $34.71 billion a year earlier. The Commerce Ministry attributed the growth to strong performances in engineering goods, electronics, pharmaceuticals, chemicals, and gems and jewelry.
“Despite an uncertain global policy environment, India’s services and merchandise exports have grown substantially in July and so far in FY26, outpacing global export growth,” said Commerce Secretary Sunil Barthwal.
The latest data reflects a strengthening of India’s external sector, backed by both rising reserves and export momentum. (Source: IANS)
