Mumbai — India’s foreign exchange reserves rose by $938 million to $682.32 billion for the week ended May 28, reversing a decline in the previous week, according to data released Friday by the Reserve Bank of India.
The country’s forex reserves had fallen by $7.51 billion to $681.38 billion in the preceding reporting week.
Despite recent volatility, India’s reserves remain among the highest in the world, though they are still below the record high of $728.49 billion reached in the week ended Feb. 27.
The reserves came under pressure in recent months after conflict in the Middle East prompted the RBI to intervene in the foreign exchange market through dollar sales to support the rupee.
Prime Minister Narendra Modi has also urged citizens since May 11 to help conserve foreign exchange by reducing foreign travel, limiting fuel consumption and avoiding gold purchases for a year.
According to RBI data, foreign currency assets, the largest component of the reserves, increased by $3.12 billion to $546.15 billion during the reporting week.
Foreign currency assets, expressed in dollar terms, reflect the effect of fluctuations in major non-U.S. currencies such as the euro, pound sterling and Japanese yen held in the reserves.
India’s gold reserves, however, declined by $2.19 billion to $112.6 billion during the week.
The country’s Special Drawing Rights with the International Monetary Fund remained unchanged at $18.75 billion.
The RBI also expressed optimism about foreign investment inflows into India.
Speaking at the post-monetary policy press conference, RBI Deputy Governor Poonam Gupta said gross foreign direct investment inflows are expected to exceed $100 billion in the current fiscal year.
Gupta said gross FDI inflows reached $95 billion in fiscal 2026, supported by healthy private capital formation and a rising investment-to-GDP ratio.
She said foreign investment could rise to $110 billion or even $120 billion in fiscal 2027, describing the increase as a long-term structural trend rather than a one-year development.
“Private capital formation numbers actually have been very healthy. Investment-to-GDP ratio has been turning upwards,” Gupta said, adding that India is likely to see stronger FDI inflows in the coming years despite global economic uncertainty. (Source: IANS)
