MUMBAI— India’s foreign exchange reserves rose by $2.7 billion to reach $698.19 billion for the week ending July 25, according to data released Friday by the Reserve Bank of India (RBI).
The increase was driven primarily by a $1.31 billion rise in foreign currency assets, which totaled $588.93 billion. These assets, denominated in U.S. dollars, reflect changes in the value of other key currencies such as the euro, pound sterling, and yen held in the reserve basket.
Gold reserves also contributed significantly, increasing by $1.2 billion to $85.7 billion.
Meanwhile, India’s Special Drawing Rights (SDRs) with the International Monetary Fund (IMF) rose by $126 million to $18.8 billion, and its reserve position with the IMF improved by $55 million to $4.75 billion.
The RBI regularly intervenes in the foreign exchange market to manage liquidity and reduce excessive volatility in the rupee, aiming to maintain orderly conditions rather than target a specific exchange rate.
According to the RBI’s monthly bulletin released last month, gross foreign direct investment (FDI) into India surged to $8.8 billion in April 2025, up from $5.9 billion in March and $7.2 billion in April 2024. Nearly half of the FDI inflows were directed toward the manufacturing and business services sectors.
India also ranked 16th globally in FDI inflows and attracted $114 billion in greenfield investments in the digital economy between 2020 and 2024 — the highest among countries in the Global South.
In addition, foreign portfolio investment (FPI) posted strong inflows, with net investments of $1.7 billion in May 2025, primarily in equities. This marked the third consecutive month of gains, buoyed by improved investor sentiment due to developments such as the India-Pakistan ceasefire, easing U.S.-China trade tensions, and better-than-expected corporate earnings for Q4 FY2024–25. (Source: IANS)
