India’s Forex Reserve: There has been news of great relief for India’s economy. If we look at the latest figures of the Reserve Bank of India, the country’s foreign exchange reserves have increased by $ 7.26 billion to reach $ 674.19 billion on July 3, 2026. Last week there was a decline in it, but this time there is a strong rise. Let us know about the foreign exchange reserves in more detail and understand how much difference PM Modi’s appeal has made.

What are foreign exchange reserves?
Foreign exchange reserves are the capital that the RBI maintains in the form of foreign currencies like dollar, euro, pound, yen, gold, special drawing rights of IMF and reserve positions in IMF. These reserves support the rupee when needed and are used to pay for imports and deal with any economic crisis. For any country, strong foreign exchange reserves are considered its economic strength.

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How did the figure reach 674 billion dollars?
There were many reasons behind the increase in foreign exchange reserves this time. The biggest contribution was from foreign currency assets, which increased by $ 4.51 billion to reach $ 545.58 billion. Apart from this, gold reserves also increased by $ 2.67 billion to $ 105.21 billion. At the same time, a slight increase was also recorded in the SDR and reserve positions of the International Monetary Fund, which strengthened the total foreign exchange reserves. Apart from this, the flow of dollars has also increased through FCNR deposits and external commercial borrowings, which has strengthened the foreign exchange reserves.

What appeal did PM Modi make?

A few months ago, when crude oil prices and dollar demand had increased due to increasing tension in the Middle East, PM Narendra Modi had appealed to the countrymen to save foreign currency. He had asked people to avoid foreign trips as much as possible, save fuel, use public transport and avoid buying gold for at least a year. In fact, India imports large quantities of crude oil and gold, for which a large amount of foreign exchange is spent. If the consumption of petrol and diesel in the country is reduced and the demand for gold remains controlled, then dollars are saved and the pressure on foreign exchange reserves is reduced.

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What was the effect of PM Modi’s appeal?

After PM Modi’s appeal, people have started saving energy and controlling unnecessary expenses. However, the direct reason for the current increase in foreign exchange reserves is not only the savings of the common people, but it also includes many big economic reasons like foreign investment, export earnings, inflow of dollars and changes in gold prices. Nevertheless, efforts by the government to reduce imports and save foreign exchange have helped a lot in the long run.

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Black Money: The Government of India not only keeps an eye on the people living in the country, but also keeps a close watch on their property. The government has full attention not only on those who have property in India but also on those who have property abroad. People who have accumulated assets abroad will now have to give their complete details to the government. If this is not done then strict action will be taken against them under the Black Money Act.

What is the whole matter?
Actually, the government is going to start the Foreign Assets of Small Taxpayers Disclosure Scheme (FAST-DS) from July 1, 2026. Under this scheme, people will get a total of six months till December 31, 2026, in which they will have to give information about their overseas assets and income, which were not earlier disclosed in the income tax return. If they do not do this in these six months, then strict action will be taken against them under the Black Money Act.

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A source close to the government has told NDTV Profit about this. According to information received from sources, this scheme is being brought especially for middle class and small taxpayers. This includes IT professionals holding ESOPs of foreign companies, NRIs returning from abroad and students having bank accounts or small assets while studying abroad.

about the scheme
This scheme will work in two categories, the first category will cover undisclosed foreign assets and income up to Rs 1 crore. On declaring these, 60% tax of the market value of the property will have to be paid. Whereas the second category will include such foreign assets up to Rs 5 crore, whose income was shown and tax was paid in India, but the information about the foreign assets was not given in Schedule FA of the income tax return. In such cases, a fee of Rs 1 lakh will have to be paid only once.

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Why is this plan important?
Let us tell you that the objective of the government behind implementing this scheme is to save people from heavy fines under the Black Money Act. Those who make correct disclosures about their foreign assets within the limited time will be saved from heavy fines and criminal action under the Black Money Act. Especially for tech professionals and Indians returning from abroad, this scheme is being considered a big opportunity to correct the old records.

Indian Foreign Exchange: Amidst the impact of inflation on the pockets of people in India, RBI has announced a good news. According to the Reserve Bank of India (RBI), India’s foreign exchange reserves have strengthened. RBI Governor Sanjay Malhotra has told about this. He said that in the week ending May 28, the country’s foreign exchange reserves increased from $938 million to $682.32 billion.

Rupee became stronger despite fall
He further said that a week before this, the foreign exchange reserves had decreased by $ 7.51 billion to $ 681.38 billion. At the end of February this year, India’s foreign exchange reserves had reached a record level of $ 728.49 billion. However, due to rising tensions in West Asia and pressure on the rupee against the dollar, there was a decline in reserves for several weeks thereafter.

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What do the latest RBI figures say?
According to the latest RBI data, the main reason for the increase in foreign exchange reserves was the increase in foreign currency assets (FCA). It increased by $3.12 billion to $546.15 billion. Forms the largest part of foreign exchange reserves. Apart from the dollar, these also include other foreign currencies like Euro, Pound and Yen. Changes in the value of these currencies also affect the foreign currency.

Gold reserve also decreased
At the same time, the country’s gold reserve has also decreased. In the week under review, it decreased by $ 2.18 billion to $ 112.6 billion. Apart from this, Special Drawing Rights (SDR) issued by the International Monetary Fund (IMF) remained stable at $ 18.75 billion. At the same time, India’s reserve position in IMF increased from $80 lakh to $4.82 billion.

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The central government has taken a big decision regarding the import of silver. The Center on Saturday made its approval mandatory for the import of silver, thereby moving the metal from ‘free’ to ‘restricted’ category. In fact, in April there was an increase of about 157 percent in silver imports on an annual basis. Recently, the government has increased the import duty on gold and silver from 6% to 15%, so that imports can be controlled and foreign exchange can be saved for essential commodities like energy and fertilizers.

The two types of HS codes include bullion-grade silver or silver bars having a weight of 99.9% or more and other types of silver bars. Harmonized System (HS) codes are a classification system for commercial products. According to the notification, unrestricted import of silver has been stopped from Saturday. Now anyone will need government approval or license to import it.

How much foreign currency does India currently have?

This order of the government has come a few days after the appeal to avoid non-essential foreign travel and not to buy gold for a year in view of the increasing pressure on India’s foreign exchange reserves. India has foreign exchange reserves of more than $690 billion, which is enough to cover 10 months of imports. However, the government is exercising caution because the war may drag on. Especially the import of gold and silver is causing a lot of pressure.

Import of silver is many times more than that of gold.

India’s gold imports increased by 24.08% to $71.98 billion in fiscal year 2026, while silver imports increased by 149.48% to $12.05 billion. Trade data released by the government on Friday showed that silver imports increased to $411.06 million in April, compared to $159.85 million in April 2025. Silver import increased by 181.17% to Rs 3,845.51 crore in April 2026, compared to Rs 1,367.67 crore in the same month of the last financial year.

Data related to the quantity of imported goods for the month of April has not been released yet. However, available data shows that both the import quantity and price of silver in March 2026 were higher than in March 2025. India imported silver consignment which increased by 91% to 128,987 kg in March 2025 and to 247,008 kg in March 2026.

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Sugar Export: The Government of India has completely banned the export of sugar with immediate effect to control the rising prices of sugar in the domestic market. Where, this ban will continue in full force till September 30, 2026 or till further orders. Along with this, this very important decision of the Government of India has been taken at a time when food prices remain a politically and economically sensitive issue for Indian families.

Ban will be applicable on two types of sugar

Actually, this ban will be completely applicable on both raw and refined sugar. But, the government has given a big relief to those shipments which are already involved in the process. Apart from this, if the loading had started before the notification was issued, the ships had arrived at the port, or the stock had been handed over to the Customs Department, then it has also been decided to allow export of those consignments.

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What is the real reason for the sudden change in policy?

According to the information, earlier the government had given permission to export 1.59 million tonnes of sugar, because then the production was estimated to be more than the consumption. But now the estimates have weakened. On the other hand, due to low production of sugarcane in the major producing states, production in India is expected to be less than consumption for the second consecutive season.

What will be the global impact of this decision of the Government of India?

It is known to everyone that India is one of the second largest sugar producers in the world. At the same time, due to the stoppage of Indian supplies due to such a big decision of the Indian Government, the countries of Asia and Africa will now start turning towards Brazil and Thailand. Due to which the future prices of sugar in the international markets will see an even greater rise than before. However, the ongoing conflict in the Middle East and rising energy costs have already begun to put pressure on global shipping routes.

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Economic context and what other steps can be taken?

A day before the ban on Chinese exports, the government has increased the import duty on gold and silver from 6 percent to 15 percent. However, this step has been taken only to completely reduce foreign exchange savings. On the other hand, the economy is currently under pressure due to the conflict related to Iran and the rupee reaching a record low of 95.75 against the dollar. Regarding this, Indian Prime Minister Narendra Modi has also made a special appeal to the citizens not to buy gold for one year so that the external financial situation of the country can be stabilized as soon as possible.

Gold Silver Import Duties: Yesterday, in his address, Prime Minister Narendra Modi had appealed to the people not to buy gold for a year. After which a huge fall was recorded in the shares of jewelery companies in the stock market on Monday. Due to which there was panic among the investors that now the import duty on gold and silver is going to increase. However, now the government itself has made this thing clear by giving its response.

Will import duty be imposed on gold and silver?
In fact, on Monday, a government source told news agency Reuters that the government is not making any such planning at present. At present no import duty is being increased on gold and silver. According to recent indications from the government, policy makers are adopting the strategy of convincing people instead of increasing taxes or imposing restrictions on imports.

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India is the second largest consumer of gold and silver in the world. In such a situation, special attention is kept on the import of gold, because it affects the country’s trade deficit and foreign exchange reserves. Gold imports in India during FY2025 are estimated at around $58–60 billion, which is one of the highest levels ever. This increase in gold imports was seen after the Union Budget 2024, when the government reduced the custom duty on gold from 15% to 6%. After this the import of gold increased rapidly.

PM’s statement
Let us tell you that during an address in Hyderabad yesterday, PM Narendra Modi had asked people to avoid unnecessary purchase of gold for a year amid tension in the Middle East and rising prices of crude oil. He advised people to reduce fuel consumption, take holidays abroad and postpone buying gold for now. The government fears that due to tensions related to Iran and increasing concerns over the Strait of Hormuz, oil prices may increase, which may impact India’s economy.

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PM Modi on Gold Jewelery Video: Prime Minister Narendra Modi has made a big appeal to the countrymen. PM Modi has appealed to the public not to buy gold jewelery for a year. PM Modi has said that in the interest of the country, we will have to decide that for the whole year, whatever function or program is held at home, we will not buy gold jewellery.

While giving a speech at an event, PM Modi said, “There was a time when there was a crisis or a war, people used to donate gold in the interest of the country. There is no need for donations today. But in the interest of the country, we will have to decide that for the whole year, whatever function or program is held at home, we will not buy gold jewellery. Our patriotism is challenging us to save foreign exchange and we have to accept this challenge and save foreign exchange.

India will have to be made self-reliant- PM Modi

PM Modi further said, “There was a time when we used to export copper, but today the situation facing India has become such that now we have to import copper also.” In our country, copper plants were shut down due to strikes and now the situation has become such that we have to buy copper from bars and foreign currency is spent on it, hence I would also tell all such labor groups and trade organizations that we must keep such things in mind. We will have to distance ourselves from all the steps that prevent India from becoming self-reliant.

Then the prices of gold and silver changed, before buying see what is the price in your city.

We have to spend large amounts of foreign currency – PM Modi

PM Modi said, “Those who are involved in such conspiracies will also have to be kept under close watch.” I would also urge the courts of the country that when such a situation arises, we should move towards finding some way out in the interest of the country. Friends, similar is the case with edible oil also. We have to spend a huge amount of foreign exchange for its import also. If every family reduces the amount of cooking oil they use, I have repeatedly told them to reduce it by 10%. Even if we reduce oil consumption, it is a great act of patriotism. You can contribute to the service of the country and this will serve the country as well as serve the body. This will improve the health of the country’s treasury and the health of every member of the family will also remain good.

Mother Earth is suffering due to chemical fertilizer farming – PM Modi

PM Modi further said, “Friends, another sector that consumes foreign currency is our agriculture. We import chemical fertilizers from outside in large quantities. Our mother earth is suffering a lot due to chemical fertilizer farming. Our fields are being ruined. If we do not save our fields today, our crops will also be in danger in the future. Therefore, it is very important that we reduce the consumption of chemical fertilizers by 25%, 30%, 40%, 50% and halve it and along with this we move towards natural farming. We can also save foreign exchange by reducing the use of fertilizers and at the same time save our farms. We can save our mother earth and we have to do this.

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India’s Forex Reserves: There has been a tremendous increase in the country’s currency reserves. During the week ended on 6 June 2025, the foreign currency reserves i.e. Forex Reserve have witnessed a tremendous jump of $ 5.17 billion and it has reached $ 696.65 billion. However, during the week ended on May 30, a week ago, the foreign exchange reserves saw a decrease of $ 1.24 billion and it had come down to $ 691.485. Foreign exchange reserves were at a record high with $ 704.885 billion during the week ended on 27 September 2024.

Increased gold reserve

According to RBI, during the week ended June 6, there has been a great increase of 1.583 billion in the gold reserve ie gold reserves. After this, the stock of gold was $ 85.888 billion. Whereas, during the week ended May 30, the Gold Reserve increased by $ 723 million.

According to the latest data released by the Central Reserve Bank, the Forex Asset has increased by $ 3.47 billion to $ 587.68 billion during the week ended June 6. These include non -American currencies like pounds, euros, yans.

Along with this, the foreign currency asset i.e. foreign exchange assets have increased by $ 3.47 billion in the last week ended June 6. After this increase, FCA has now increased to $ 587.68 billion. The highest part of FCA is in foreign exchange reserves.

Significantly, such an increase is a positive sign for any country. These reserves are also an important measure of measuring the economic strength of a country, which helps to keep foreign debt repayment, import expenses and currency stability.

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