New Delhi: India’s foreign exchange reserves rose by $15.267 billion to $653.966 billion in the week ending March 7. This is the biggest increase in foreign exchange reserves in the last two years. This information has been given by the RBI.
In the previous week, the country’s foreign exchange reserves fell by $1.781 billion to $638.698 billion. The reason for this increase in foreign exchange reserves is believed to be the $10 billion forex swap done by the Reserve Bank of India (RBI) on February 28. Under this forex swap, the central bank bought dollars in exchange for rupees with the aim of increasing liquidity and stabilizing the market.
Last year in September 2024, the forex reserve reached an all-time high of $704.885 billion. Foreign currency assets, which are an important component of foreign exchange reserves. It has increased by $13.993 billion to $557.282 billion. RBI data showed that Special Drawing Rights (SDRs) increased by $212 million to $18.21 billion. India’s reserve position in the IMF fell by $69 million to $4.148 billion.
In addition, the RBI’s monthly bulletin said that high-frequency indicators show that economic activity in India is growing rapidly in the second half of FY 2024-25. The report said that according to the IMF and the World Bank, India’s GDP growth could be 6.5 percent and 6.7 percent in FY 2025-26.
In addition, a report by rating agency Moody’s said that increase in government capital expenditure, softening of monetary policy, reduction in income tax in the budget will play an important role in increasing India’s growth rate.
The report further said that India’s GDP growth rate could be more than 6.5 percent. India’s economic growth is expected to pick up after a temporary slowdown in mid-2024, the report said.
