India, August 29 : India’s foreign exchange reserves climbed to a record $729.33 billion, rising by $12.4 billion in the week ended August 21, according to the latest data released by the Reserve Bank of India.
The increase was supported by stronger inflows through the RBI’s concessional FCNR(B) deposit window, along with gains arising from the revaluation of foreign assets. The latest rise further strengthens India’s external financial position at a time when global markets remain vulnerable to geopolitical and monetary-policy uncertainties.
Foreign currency assets, the largest component of the reserves, increased by about $9.48 billion during the week. The improvement in the reserve position provides additional support for the country’s ability to manage external shocks and periods of volatility in global financial markets.
The record level comes as India faces higher risks from disruptions in international energy and shipping markets. The ongoing crisis around the Strait of Hormuz has increased concerns over fuel costs and the country’s import bill.
The stronger reserve position gives policymakers greater room to manage pressure on the rupee and meet external payment requirements. It also provides a larger cushion against sudden changes in global capital flows.
The rise in reserves follows a broader strengthening of India’s external buffers. Analysts have highlighted the role of foreign exchange management and improved inflows in building resilience against balance of payments pressures.
With reserves now above $729 billion, India remains better placed to absorb external financial shocks while maintaining stability in its currency and broader financial system.