India’s growth story is safe, secure and stable: Piyush Goyal
New Delhi: Commerce and Industry Minister Piyush Goyal on Sunday highlighted India’s strong foreign exchange reserves and its status as the world’s fastest growing major economy, which is attracting both global and domestic capital.
“India’s growth story is safe, secure and stable,” the minister said in his address at an event organised by leading mutual fund managers and financial advisors in the national capital.
“Today, through initiatives like ‘Make in India’, our country has become more integrated into global supply chains on the back of its competitive strength and growing manufacturing capabilities,” he said.
Goyal’s statement on the strong economic fundamentals of the economy comes at a time when India’s foreign exchange reserves rose for the seventh consecutive week to a six-month high of $686.15 billion on April 18, according to the latest data from the Reserve Bank of India.
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Foreign exchange reserves rose by $8.3 billion in the week ended April 18, compared to a rise of $39.2 billion in the previous six weeks.
Strength in the country’s foreign exchange reserves strengthens the rupee against the US dollar, which is good for the economy.
The recent increase in foreign exchange reserves has also strengthened the rupee.
Increase in foreign exchange reserves gives the RBI more scope to stabilize the rupee when it becomes volatile.
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The RBI can intervene in the spot and forward currency markets by issuing more dollars to prevent the rupee from falling.
Conversely, declining foreign exchange reserves leave the RBI with less scope to intervene in the market to support the rupee.
The IMF report released last week said India remains the world’s fastest growing major economy and is the only country to register growth of more than six percent in the next two years.
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The IMF Outlook report forecasts India’s economic growth rate to be 6.2 percent in 2025 and 6.3 percent in 2026, 2 percentage points higher than second-placed China’s economic growth forecast of 4 percent for 2025 and 4.6 percent in 2026.
The US, which has unleashed tariff turmoil around the world, is expected to see GDP growth slow to 1.8 percent this year, which is expected to fall further to 1.7 percent in 2026, according to the report.
