News India Live, Digital Desk: Another positive news has come out for the Indian economy. According to the Reserve Bank of India (RBI), the country’s foreign exchange reserves have increased to $ 688.13 billion to the eighth consecutive week till April 25. The main reason for this growth is an increase in foreign currency assets, although a slight decline has been recorded in gold reserves.
Major data of increase in foreign exchange reserves:
- Total foreign exchange reserves: $ 1.98 billion to $ 688.13 billion
- Forex assets: $ 2.17 billion to $ 580.66 billion
- Gold reserves: Dollars declined by $ 207 million to $ 84.37 billion
- Special Drawing Rights (SDR): $ 21 million to $ 18.59 billion
Why is foreign exchange reserves necessary?
The country’s strong foreign exchange reserves maintain the stability of the rupee against the US dollar. This strengthens the Indian economy and helps RBI control the rupee fluctuations in the money market. RBI has an opportunity to stop the rupee from falling by selling dollars due to strong reserves.
Return from historical highest level
In September 2024, India’s foreign exchange reserves reached an all -time high of $ 704.885 billion. However, there was some decline in the middle, but now the stock is registering an increase again.
Record increase in export
India’s total exports reached a record level of $ 824.9 billion in FY 2024-25, which is 6.01% higher than the previous year’s $ 778.1 billion. There has been a significant increase in service exports especially, which reached $ 387.5 billion.
In March 2025, service exports stood at $ 35.6 billion, which is 18.6% higher than $ 30 billion in March 2024. This growth shows the strength of the Indian economy.
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