India’s Forex Reserves Near Record High at $702.28 Billion
India’s foreign exchange reserves surged by $4.5 billion to reach $702.28 billion in the week ending October 17, 2025, driven primarily by a significant increase in gold holdings. The reserves are now approaching the all-time peak of $704.89 billion recorded in September 2024.
Key Takeaways
- Forex reserves increased by $4.5 billion to $702.28 billion
- Gold reserves surged by $6.18 billion to $108.55 billion
- Reserves now cover over 11 months of merchandise imports
- 2025 has seen cumulative growth of approximately $53 billion
Weekly Reserve Components
While overall reserves climbed, foreign currency assets (FCA) – the largest component – declined by $1.69 billion to $570.41 billion. The standout performer was gold reserves, which jumped by $6.18 billion to $108.55 billion amid global economic uncertainties driving demand for the safe-haven asset.
RBI’s Strategic Management
Following the recent monetary policy review, RBI Governor Sanjay Malhotra emphasized that India’s external sector remains resilient. The central bank maintains confidence in comfortably meeting all external obligations with the current substantial reserve buffer.
Multi-Year Growth Trend
The latest increase continues a strong recovery pattern:
- 2023: Added $58 billion after 2022’s $71 billion decline
- 2024: Grew by over $20 billion
- 2025: Cumulative increase of approximately $53 billion so far
The RBI strategically intervenes in currency markets, buying dollars when the rupee strengthens and selling during weakness to prevent sharp depreciation. Foreign exchange reserves comprise primarily US dollars with smaller allocations in Euro, Japanese Yen, and Pound Sterling.
