In a remarkable boost to India’s economic arsenal, the country’s foreign exchange reserves skyrocketed by over $14 billion in just one week, reaching a robust $701.360 billion as of January 16. This dramatic increase marks one of the sharpest weekly gains in recent memory, signaling strong inflows and macroeconomic resilience.
The Reserve Bank of India (RBI) data reveals that foreign currency assets (FCA), the largest component of the reserves, jumped by $9.652 billion to $560.518 billion. These assets include major global currencies like the US dollar, euro, yen, and pound, valued in dollar terms. Gold reserves also gleamed brighter, rising $4.623 billion to $117.454 billion, reflecting favorable global commodity prices.
While special drawing rights (SDRs) dipped slightly by $35 million to $18.704 billion and the IMF reserve position fell $73 million to $4.684 billion, these minor adjustments were overshadowed by the overall surge. Compared to the previous week ending January 9, when reserves grew by a modest $392 million, this week’s performance is nothing short of spectacular.
India’s forex reserves play a pivotal role in maintaining currency stability. When the rupee faces pressure against the dollar, the RBI can intervene by selling dollars from its reserves to prop up the local currency. This massive buildup underscores robust dollar inflows from exports, remittances, and foreign investments, bolstering India’s capacity to weather global shocks.
Historically, reserves hit an all-time high of $704.89 billion in September 2024, with another peak of $702.25 billion in October 2025. The current level positions India among the top global reserve holders, enhancing its import cover to over 11 months and facilitating smoother international trade. Economists view this as a testament to the economy’s vigor amid global uncertainties, paving the way for sustained growth in 2025.
