NGTV NEWS | BUSINESS DESK
INDIA’S FOREX RESERVES HIT RECORD HIGH OF $729.33 BILLION
MUMBAI | AUGUST 29, 2026
NEWS DESK: India’s foreign exchange reserves have touched a fresh all-time high of $729.33 billion, marking a significant strengthening of the country’s external financial position. The latest figures, released on August 28, show that reserves rose by $12.42 billion during the week ended August 21.
The latest figure has surpassed the previous record of around $728.49 billion, recorded in February this year. The rise also marks the eighth consecutive week of growth, with India’s reserve stock increasing by roughly $63 billion during this period.
FOREIGN CURRENCY ASSETS LEAD THE RISE
Foreign currency assets, the largest component of the reserve portfolio, increased by approximately $9.48 billion during the week to reach $591.33 billion.
Gold reserves also made a substantial contribution. The value of India’s gold holdings rose by around $2.80 billion, taking the total to approximately $114.22 billion. Special Drawing Rights stood at about $18.85 billion, while India’s reserve position with the International Monetary Fund was around $4.93 billion.
WHAT IS DRIVING THE SURGE?
A major factor behind the recent increase has been strong foreign-currency inflows following measures introduced in June to encourage overseas deposits and foreign-currency borrowing.
The measures attracted nearly $73 billion in foreign-exchange inflows between June 5 and August 21, including a substantial contribution from non-resident Indian deposits. The strong response prompted the central bank to bring forward the closure of one of its deposit-related facilities.
WHY THE RECORD MATTERS
A larger reserve cushion gives India greater protection against external financial shocks, including sudden capital outflows, currency volatility and higher import costs. It also provides greater room for managing pressure on the rupee during periods of global uncertainty.
However, the record reserve level should not be viewed in isolation. Reserve accumulation can reflect both genuine foreign-currency inflows and changes in the value of assets held in the reserve portfolio.
For now, the record $729.33-billion reserve stock provides India with a substantial external financial buffer at a time when global markets remain uncertain.
— NGTV NEWS | BUSINESS DESK
