India’s foreign exchange reserves have surged to a historic $785.7 billion, positioning the country as the fourth largest holder of reserves globally. According to the latest data from the Reserve Bank of India (RBI), the reserves increased by $44.9 billion in the week ending September 4, marking the largest weekly rise in the series and pushing the total reserves to an unprecedented level.
The latest surge caps a two-decade expansion in India’s reserve holdings. The rise has also reshaped India’s position in the global rankings. Forex reserves are often seen as a country’s first line of defence against external shocks. They help central banks manage currency volatility, meet import and debt obligations and reassure investors during periods of global uncertainty.
Weekly RBI data show the country’s forex reserves stood at about $141.2 billion in 2005. Since then, reserves have increased more than five-fold, rising steadily through periods of global economic uncertainty, including the 2008 financial crisis, the Covid-19 pandemic and subsequent market volatility. Only China ($3.85 trillion), Japan ($1.29 trillion) and Switzerland ($939 billion) currently hold larger forex reserves, according to data by Trading Economics. India has moved ahead of countries such as Russia ($761 billion), Taiwan ($597 billion) and Saudi Arabia ($487 billion). With reserves now approaching the $800-billion mark, India is not only sitting on its largest-ever buffer but has also joined an elite group of nations with some of the biggest reserve stockpiles in the world.
