India Set For $700-Bn Forex Reserves In FY25

New Delhi: Despite global economic headwinds and deepening geopolitical uncertainties, the forex reserves are at record all-time high levels and are set to cross $700 billion in FY25 sooner than expected.

According to a latest note by global investment firm Jefferies, RBI’s forex reserve is estimated to go up by a massive $53 billion to reach $700 billion in the current fiscal (FY25E). The rupee is now the most stable currency among major economies, it added.

However, the way forex reserves are surging in FY25, the $700 billion mark does not look very far. India’s forex reserves jumped $5.2 billion to a fresh all-time high of $689.24 billion (in the week ended September 6). According to the weekly RBI data, foreign currency assets (FCAs) grew by $5.10 billion to $604.1 billion.

The country is currently seeing strong domestic flows. FPI flows into debt markets have also picked up. FPIs bought equities in the Indian stock market worth Rs16,800crore last week, taking the total buying to Rs27,856 crore (till September 13).

As per the NSDL data, FPIs were buyers of equity in the cash market on all days last week.