India’s Forex Reserves Cross $702 Billion
India’s foreign exchange reserves rose by $4.84 billion to reach $702.78 billion for the week ending June 27, 2025, according to the Reserve Bank of India (RBI).
Breakdown of the Reserve Components
- Foreign currency assets drove the increase.
- Gold reserves fell by $1.23 billion to $84.5 billion.
- SDRs increased by $158 million to $18.83 billion.
- IMF reserve position rose by $176 million to $4.62 billion.
Context and Trends
The reserves remain close to the all-time high of $704.88 billion in September 2024. Forex reserves are crucial for maintaining currency stability and supporting external trade obligations.
This uptick reflects a stable macroeconomic position and continued foreign capital inflows into Indian equity and debt markets, amid easing global financial conditions.
Future Outlook
Experts expect forex reserves to remain stable or gradually increase, barring any global financial shocks. The RBI is likely to maintain its conservative approach in managing external assets, with a focus on liquidity and volatility control in the rupee-dollar market.