Despite global uncertainties, India's foreign exchange reserves surged by $14.361 billion in the week ended January 30, reaching an all-time high of $723.774 billion, according to data released by the Reserve Bank of India (RBI) on Friday.
In the previous week, the reserves had increased by $8.053 billion. The increase in foreign exchange reserves is primarily attributed to a rise in gold prices.
According to the Central Bank data, the value of gold reserves, a key component of the foreign exchange reserves, increased by $14.595 billion to $137.683 billion in the week ended January 30.
The value of Foreign Currency Assets (FCA), the largest component of the reserves, decreased by $493 million to $562.392 billion.
FCA includes several major global currencies such as the yen, euro and pound -- in addition to the dollar -- and their value is expressed in US dollars.
According to the RBI, the value of Special Drawing Rights (SDRs) increased by $216 million to $18.953 billion in the week ended January 30. India's reserve position with the IMF also increased by $44 million to $4.746 billion.
Meanwhile, India remains the world's largest recipient of remittances, with inflows reaching $135.4 billion in FY25, supporting stability in the external account, according to the Economic Survey 2025-26.
India has consistently attracted sizeable gross investment inflows, amounting to 18.5 per cent of GDP in FY25, even amid tightening global financial conditions.
According to reports, the prospective India-US trade deal is structurally positive for India's medium-term growth and external stability.
Improved market access and tariff certainty are likely to boost exports, support manufacturing investment, and strengthen inflows of foreign direct investment (FDI), Axis Securities said in its report. It is particularly positive for export-oriented sectors with meaningful exposure to the US market.
(With inputs from IANS)
