By Admin 
India’s Forex Reserve: There has been a stir in global and domestic business circles after US President Donald Trump hinted at imposing tariffs of up to 500 percent on India. The effect of this apprehension is directly visible on the stock market also. In the last five trading sessions, the Sensex has fallen by almost 2000 points, while the Nifty has also registered a decline of more than 2 percent. On the other hand, India has made it clear that it is not going to bow down to any kind of pressure. The Indian Ministry of External Affairs has clearly said that the government is keeping an eye on the markets around the world to meet the country’s energy needs and there will be no compromise with national interests.
shock on the economic front
Meanwhile, another shock has emerged on the economy front. According to the Reserve Bank of India (RBI), the country’s foreign exchange reserves declined by $9.81 billion to $686.80 billion in the week ending January 2. A week before this, an increase of 3.29 billion dollars was recorded in the foreign exchange reserves and it reached the level of 696.61 billion dollars. It is clear from the latest data that the recent global uncertainty and market pressure has also affected India’s reserves.
According to the central bank data, the biggest reason for this decline has been the decrease in foreign currency assets (FCA), which decreased by $ 7.62 billion to $ 551.99 billion. These assets, measured in dollar terms, constitute the largest portion of foreign exchange reserves and also include the impact of fluctuations in the value of non-US currencies such as the euro, pound and yen.
Impact of global stress dominates!
RBI also said that during this period the value of the country’s gold reserves decreased by $ 2.06 billion to $ 111.26 billion. At the same time, Special Drawing Rights (SDR) decreased by $ 25 million to $ 18.78 billion. Apart from this, there was also a decline in India’s reserves with the International Monetary Fund (IMF) and it decreased by $ 105 million to $ 4.77 billion. These figures indicate that the impact of increasing tension and uncertainty at the global level is beginning to be seen on India’s economic situation as well.
Also read: Amidst US high tariff, India is exporting heavily to this country, 33% increase during April-November