India’s foreign exchange reserves surged to a new all-time high of $723.8 billion, driven primarily by a sharp rise in gold valuations, according to the latest data released by the Reserve Bank of India (RBI). The reserves jumped by over $14 billion in a single week, marking one of the strongest weekly increases in recent months.

Key Highlights

• India’s forex reserves surged to a record $723.8 billion, driven largely by strong gold valuation gains.
• Higher reserves strengthen rupee stability, boost investor confidence, and enhance external sector resilience.

The sharp uptick was largely supported by the significant appreciation in gold reserves, which rose by nearly $14.6 billion, while foreign currency assets (FCAs), the largest component of the reserves, saw a marginal decline. Special Drawing Rights (SDRs) and India’s reserve position with the International Monetary Fund (IMF) also recorded modest increases during the period.

At the current level, India’s forex reserves provide import cover of more than 11 months, strengthening the country’s external sector stability and enhancing its ability to manage global economic volatility. The record reserves also offer a strong buffer against capital flow fluctuations, currency pressures, and geopolitical uncertainties.

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Economists view the surge as a positive indicator of macroeconomic resilience, aided by robust capital inflows, currency valuation gains, and prudent reserve management by the central bank. The strong reserve position further supports the rupee, boosts investor confidence, and enhances India’s standing among global emerging economies.

The RBI reiterated that the healthy reserve levels would help meet external financing needs comfortably, reinforcing India’s financial stability outlook for 2026.