On August 2, India’s foreign exchange reserves reached a record high of $675 billion, Reserve Bank of India Governor Shaktikanta Das revealed on Thursday. This is a considerable increase from the previous high of $670.857 billion on July 19, as well as from $667.386 billion on July 26. Das stated that the country’s external sector is strong, with improvements in key metrics, and that he is confident in achieving external finance requirements comfortably.
The RBI Governor stated that foreign portfolio investors have become net purchasers in the domestic market since June 2024, with net inflows of $9.7 billion between June and August 6. This move follows outflows of $4.2 billion in April and May.
Governor Das’ statement came after the most recent monetary policy review, emphasising India’s external sector resilience and ability to efficiently handle external finance requirements.
Furthermore, gross foreign direct investment (FDI) surged by more than 20% between April and May 2024, while net FDI flows doubled compared to the same time the previous year. Although foreign commercial borrowings by Indian firms have slowed, non-resident deposits increased in April-May.
