The reason behind the strength of India’s economy is not just the factories, farms or startups, but also the crores of Indians living in different corners of the world. What these people earn while living abroad directly impacts the pockets of India. Sometimes the money was sent for family expenses, and sometimes the money came in the form of big investments – this is the reason why India today is able to maintain balance even amidst economic shocks. After all, how big is the role of NRIs in the country’s GDP? Let us find out.

Strong relationship between NRI and Indian economy

Non-Resident Indians i.e. NRIs are not only an emotional bond for India, but are also an economic force. Indians working abroad send large amounts of money to India every year. This is called remittance. This remittance strengthens India’s foreign exchange reserves and plays an important role in maintaining the economic stability of the country.

How does remittance strengthen GDP?

India is among those countries in the world which receive the highest remittances. According to various international reports, remittances sent by NRIs contribute about 3% of India’s GDP. This amount directly increases the income of the families. This increases expenditure in households, creates demand in the market and gives impetus to business.

Domestic consumption gets direct benefit

When money comes to India from abroad, it is used for education, health, building houses, buying cars and daily needs. Real estate, automobile, consumer goods and service sectors get direct benefits from this. This domestic consumption gives a strong base to GDP.

New opportunities are created through investment

NRIs are not limited to just sending money. They also invest in real estate, stock market, infrastructure and startups in India. Especially in the technology and startup sectors, the role of NRI investors has increased rapidly. This not only brings capital but also creates new jobs.

Role of NRI in employment generation

Many new companies and projects are started with the investment made by NRIs. This creates jobs in sectors like IT, service, manufacturing and construction. Many times, Indians who have gained experience abroad come back and start their own business, which increases employment opportunities at the local level.

Foreign exchange reserves and economic security

India’s foreign exchange reserves remain strong due to remittances and NRI investments. This reserve supports India in times of global recession, rising oil prices or international crisis. Economists believe that this is the reason why India has been able to withstand global shocks relatively better many times.

advantage of knowledge and skills

Along with money, NRIs also bring their experience and skills to India. Especially in the IT, healthcare and management sectors, returning NRIs bring new technology and modern thinking. This improves the working style and competitiveness of Indian companies.

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Forex Reserves in India: The country’s foreign exchange reserves have declined by $6.92 billion to $695.35 billion in the week ending October 24. Reserve Bank of India (RBI) gave this information on Friday. In the previous week, foreign exchange reserves had increased by $ 4.49 billion to reach an all-time high of $ 702.28 billion.

Where did the decline come from?

According to RBI data, the largest part of foreign exchange reserves i.e. Foreign Currency Assets declined by $ 3.86 billion to $ 566.54 billion. Apart from the dollar, these assets also include the impact of price changes in other currencies like euro, pound and yen. During the week under review, gold reserves decreased by $ 3.01 billion to $ 105.536 billion. Apart from this, Special Drawing Rights (SDR) also declined by $58 million to $18.66 billion.

However, during the same period, India’s reserves in the International Monetary Fund (IMF) increased by $ 6 million to $ 4.608 billion. According to experts, this decline in foreign exchange reserves is mainly due to fluctuations in other major currencies against the dollar and the intervention of RBI.

Rupee stable at 88.69 against dollar

On Friday, the Indian rupee closed stable at 88.69 (provisional) against the US dollar after minor fluctuations throughout the day. Weakness in the domestic stock markets and the strength of the American currency were the main reasons for this. The rupee opened at 88.60 per dollar in the interbank foreign exchange market and touched a high of 88.59 and a low of 88.78 during trading. In the end it remained stable at its previous closing level of 88.69 per dollar. On Thursday, the rupee fell by 47 paise and closed at the same level.

The dollar index, which shows the position of the dollar against six major currencies, reached 99.39 with a slight increase of 0.04 percent. There was weakness in the domestic stock markets too – Sensex fell 465.75 points to 83,938.71 points and Nifty fell 155.75 points to close at 25,722.10 points. In the international market, Brent crude, the standard of crude oil, declined by 0.68 percent to $ 64.56 per barrel. At the same time, according to stock market data, foreign institutional investors (FIIs) were sellers on Thursday and made a net sale of shares worth Rs 3,077.59 crore.

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India’s Forex Reserve: India’s foreign exchange reserves declined by $ 2.33 billion to $ 700.24 billion in the week ended on 26 September. RBI released data in this regard on Friday. A week ago, the country’s total foreign exchange reserves were $ 702.57 billion, which fell with a decrease of $ 39.6 million.

Foreign exchange reserves decline

According to the Reserve Bank data, foreign exchange assets, considered to be the major component of currency reserves, fell by $ 4.39 billion to $ 581.76 billion. These assets also include the effect of price growth or depreciation in non-American currencies such as euros, pounds and yen.

In a recent Monetary Policy Committee (MPC) meeting, RBI Governor Sanjay Malhotra said that by the end of March 2025, India’s foreign exchange reserves are so enough that they can cover the import of 11 months of goods or complete about 95.4 percent of the total outstanding external loans of the country. This reflects the strength and financial stability of India’s foreign exchange status.

Gold reserves increased by $ 2.24 billion to $ 95.02 billion in the week under review, while special drawing rights (SDR) declined by $ 9 million to $ 18.78 billion. Apart from this, India’s reserved reserves in the International Monetary Fund decreased by $ 8,9 million to $ 4.67 billion.

Rupee weakened in interbank foreign exchange market

Due to dollar demand of importers and frequent foreign capital withdrawal, the rupee fell seven paise against dollar in the interbank foreign currency exchange market on Friday at 88.78 (temporary). According to Forex traders, the rupee remains around its all -time low against the dollar due to trade tension and global uncertainties.

In addition, the issue of frequent foreign capital withdrawal and US visa fee increase also put pressure on the domestic currency. In day -to -day trading, the rupee opened at 88.68 against the US dollar and went to a low of 88.85, while finally it fell seven paise to 88.78 (temporary) from the last closed price.

For comparison, the rupee closed at 88.71 against the dollar with a gain of nine paise on Wednesday. Significantly, on September 30, the rupee came to its all -time low of 88.80 against the US dollar. Shares, foreign currency, bullion and commodity markets remained closed on Thursday due to Gandhi Jayanti and Dussehra.

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According to the latest report of the Reserve Bank of India (RBI), the foreign exchange reserve of the country, or foreign exchange reserves of the country, has increased by $ 1.98 billion to 688.13 billion in the week ended on April 25. This is the eighth consecutive week when an increase in the reserve of India has been recorded.

However, this figure is still slightly below the $ 704.88 billion high of September 2024, but seeing the trend, it is clear that India’s foreign currency positions are getting stronger again.

FCA’s biggest contribution

The biggest contribution behind this edge was Foreign Currency Assets (FCA), which has increased by $ 2.17 billion to $ 580.66 billion. Note that in addition to dollars, FCA also includes other currencies like euro, pounds and yen and their valuation also leads to fluctuations.

However, this week, gold reserves have fallen by $ 207 million and now it has come to $ 84.36 billion. Apart from this, SPECIAL Drawing Rights (SDRS) related to IMF increased by $ 21 million to $ 18.58 billion, and India’s reserve position in IMF also increased by $ 2 million to $ 4.51 billion.

Center has no borrowings

RBI also said that the central government has no borrowing of them, but the loans given to the states have declined. This has come down from 36,792 crore to 22,324 crore. If we talk about from March 2025 till now, then there has been a total increase of $ 19.80 billion in the Forex Reserve of India i.e. 1.67 lakh crores. FCA, Gold, SDR and IMF Positions have contributed positively in this. If you look throughout the year, since 26 April 2024, there has been an increase of Rs 5.61 lakh crore ($ 50.21 billion). This in itself shows India’s external economic strength.

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India Forex Reserve: The Reserve Bank of India said on Friday that India’s foreign exchange reserves have increased by $ 8.31 billion to $ 686.145 billion in the week ended April 18. The country’s foreign exchange reserves have been increasing for seven weeks continuously. Earlier, it increased by $ 1.567 billion to $ 677.835 billion in the previous week ended on 11 April.

Forex Reserve on All-Time High in September

In September 2024, the country’s foreign exchange reserves reached its all -time high level of $ 704.885 billion. The data released for the week ended on April 18 indicates that foreign exchange assets, considered an important part of the foreign exchange reserves, have increased by $ 3.516 billion to $ 578.495 billion. According to the news agency PTI, the foreign exchange assets mentioned in the context of the dollar include the influence of the subversion of non-American currencies such as euros, pounds and yens placed in foreign exchange reserves.

The country’s gold reserves also increased

The Reserve Bank said that during this period, the gold reserve has increased by $ 4.575 billion, which has reached $ 84.572 billion. According to the Reserve Bank, the Special Drawing Rights (SDR) has increased by $ 212 million to $ 18.568 billion. RBI data has shown that the IMF registered an increase of $ 7 million in India’s reserved situation, reaching $ 4.51 billion in a week under review.

Why is foreign exchange reserves important?

The country’s foreign exchange reserves help to maintain economic stability and international trade. It is used to pay imported goods, to repay foreign loans and to handle the rupee in the time of global economic crisis. Due to excessive currency in the reserve, it makes the country’s situation strong in the international market.

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India Foreign Exchange Reserve: The Reserve Bank of India said on Friday that India’s foreign exchange reserves rose $ 1.567 billion to $ 677.835 billion in the week ended April 11. This is a consecutive sixth week when the country’s foreign exchange has increased. Earlier in the last reporting week ended on April 4, the total foreign exchange reserves saw an increase of $ 10.872 billion, reaching $ 676.268 billion.

Increase in foreign currency assets too

According to the data released on Friday, Forex assets, which are an important part of the reserves, increased by $ 892 million to $ 574.98 billion. In September 2024, the highest level of foreign exchange reserves was recorded at $ 704.885 billion. Foreign exchange assets expressed in terms of dollars include the influence of the decrease of non-American currencies such as the euros, pounds and yen placed in foreign exchange reserves.

Gold reserve of the country also increased

RBI said that during this time the country’s gold reserve has also increased, which has increased by $ 638 million to $ 79.997 billion. However, the Special Drawing Rights (SDR) has come down by $ 6 million to $ 18.356 billion. RBI data states that India’s reserved position with the IMF increased by $ 43 million to $ 4.502 billion in the week under review.

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Forex reserve of india: The foreign exchange reserves of the country have re -boiled. As of April 4, 2025, India’s foreign exchange reserves have reached $ 676.3 billion, which is $ 10.9 billion more than last week. The foreign exchange reserves increased by $ 7.9 billion as compared to the end of March 2025. This increase of $ 10.9 a week occurred at a time when the dollar has declined globally in view of the reactions of the currency market for the tariffs imposed by US President Donald Trump. Along with buying dollars, the forex reserve of the country has also increased due to increasing valuation of non-dollars assets of RBI. Foreign currency assets are the largest part of India’s foreign exchange reserves.

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India Forex Reserve: India’s foreign exchange reserves have increased by $ 6.596 billion to $ 665.396 billion during the week ended March 28. The Reserve Bank of India said on Friday that the foreign exchange reserves had increased by $ 4.53 billion last week. This is the fourth consecutive week when the country’s foreign increased currency reserves. Recently, it was a decline in the Reserve Bank of India’s foreign exchange market to reduce the instability in the rupee.

Forex assets also increased

By the end of September 2024, the country’s foreign exchange reserves increased to $ 704.88 billion all-time high level. According to the data released on Friday, foreign exchange assets also increased to $ 6.16 billion to $ 565.01 billion in the week, which ended on March 28. Foreign exchange assets mentioned in terms of dollars include the effects of the decrease of non-American currencies such as the euros, pounds and yen placed in foreign exchange reserves.

Gold reserve of the country also increased

Please tell that during this time the gold reserve reserves also increased. The RBI said that gold reserves also increased by $ 519 million to $ 77.79 billion in the week under review. Special drawing rights (SDR) declined by $ 65 million to $ 18.18 billion. According to the data, during this period, the country’s reserved reserves with the International Monetary Fund (IMF) declined by $ 1.6 million to $ 4.41 billion. Please tell that during this time, the foreign exchange reserves of India’s neighboring country Pakistan have also increased.

Why Forex Reserve is important?

As we know that foreign exchange assets include currencies from other countries like dollars, euros, pounds, yen. The country’s foreign exchange reserves are used for paying global liabilities, implementing monetary policy, repaying debt from abroad and spending by Indians during studying, treatment or walking abroad.

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