By Admin 
India’s Forex Reserve: At a time when the Union Budget is to be presented on February 1 and huge fluctuations are being seen in the stock market and the rupee, a big relief news has come to the fore for the country. While this news may make US President Donald Trump, who has imposed high tariffs on India, uncomfortable, it may also increase the concern of countries like China and Pakistan.
In fact, in the week ending January 23, India’s foreign exchange reserves have increased by $ 8.05 billion to reach an all-time high of $ 709.41 billion.
Increase in foreign currency assets
According to the Reserve Bank of India (RBI), last week the country’s total foreign exchange reserves had increased by $ 14.16 billion to $ 701.36 billion. Earlier in September 2024, foreign exchange reserves had reached the level of $ 704.89 billion, although in recent months it was used to control excessive fluctuations in the rupee, due to which pressure was seen on the reserves.
According to RBI data, foreign currency assets (FCA), considered the largest part of foreign exchange reserves, increased by $ 2.36 billion to $ 562.88 billion in the week ending January 23. These assets, denominated in dollars, also include the impact of fluctuations in non-US currencies such as the euro, pound and Japanese yen.
Gold reserves also strong
In the week under review, the value of gold reserves increased by $ 5.63 billion to reach $ 123.08 billion. Apart from this, Special Drawing Rights (SDR) increased by $33 million and stood at $18.73 billion. At the same time, India’s reserve position with the International Monetary Fund (IMF) also increased by $18 million to $4.70 billion.
It is noteworthy that India, which has become the fourth largest economy in the world, is engaged in rapidly strengthening the manufacturing sector under the ‘Make in India’ initiative. Along with this, to reduce the impact of American tariffs, India is also working towards creating new export markets by signing Free Trade Agreements (FTA) with many countries including Britain and European Union (EU).
Market experts believe that to achieve the goal of becoming a ‘developed India’ by 2047, it will be necessary for the country to maintain a continuous GDP growth rate of around eight percent. In such a situation, India will have to take fast and concrete steps for economic reforms, increasing investment and strengthening its share in global trade.
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