MUMBAI, India — India’s foreign exchange reserves rose sharply to a new all-time high in the week ended January 30, driven largely by a surge in the value of gold holdings, according to data released by the central bank on Friday.
Total reserves increased by $14.36 billion to $723.77 billion during the week, following a rise of $8.05 billion in the previous reporting period. The latest increase comes despite ongoing global economic and financial uncertainty.
Gold reserves were the primary contributor to the jump, with their value rising by $14.60 billion to $137.68 billion. The increase was attributed to higher global gold prices during the period.
In contrast, foreign currency assets, the largest component of India’s reserves, declined by $493 million to $562.39 billion. These assets include holdings in major international currencies such as the yen, euro, and pound, in addition to the U.S. dollar, and are reported in dollar terms.
Other reserve components showed modest gains. Special Drawing Rights increased by $216 million to $18.95 billion, while India’s reserve position with the International Monetary Fund rose by $44 million to $4.75 billion.
India continues to benefit from strong external inflows. The country remained the world’s largest recipient of remittances, with inflows totaling $135.4 billion in FY25, helping support stability in the external account, according to the Economic Survey 2025–26.
Gross investment inflows have also remained resilient, amounting to 18.5% of GDP in FY25, even as global financial conditions tightened.
Market analysts say prospects for a potential India–U.S. trade agreement could further support medium-term growth and external stability. Improved market access and greater tariff certainty are expected to boost exports, encourage manufacturing investment, and strengthen foreign direct investment inflows, particularly for export-oriented sectors with significant exposure to the U.S. market. (Source: IANS)
