India’s foreign exchange reserves rose by $1.68 billion to $688.94 billion in the week ended December 12, according to data released by the Reserve Bank of India (RBI) on Friday. The increase was largely driven by a sharp rise in gold reserves and modest gains in foreign currency assets.
Foreign currency assets (FCAs), the largest component of the reserves, climbed $0.91 billion to $557.79 billion during the week. FCAs reflect movements in major non-U.S. currencies such as the euro, pound sterling, and yen held within the reserve basket.
Gold reserves recorded a notable increase of $0.76 billion, taking total gold holdings to $107.74 billion. The sustained accumulation of gold highlights the central bank’s ongoing efforts to diversify its reserve composition amid heightened global economic uncertainty.
India’s Special Drawing Rights (SDRs) with the International Monetary Fund edged up marginally by $0.01 billion to $18.74 billion, while the country’s reserve position with the IMF also increased by $0.01 billion to $4.69 billion.
In the previous reporting week ended December 5, India’s forex reserves had risen by nearly $1.03 billion to $687.26 billion. During that period, gold reserves rose by $1.19 billion to $106.98 billion, while SDRs increased by $93 million to $18.72 billion.
The RBI reiterated that it continues to closely monitor developments in the foreign exchange market and intervenes when required to ensure orderly market conditions and curb excessive volatility.
Meanwhile, India has seen a sharp rise in foreign direct investment (FDI) commitments during the current financial year. Total FDI inflows during the first half of FY 2025–26 reached $50.36 billion, marking a 16% increase compared with $43.37 billion in the same period last year. This represents the highest-ever FDI inflow recorded in the first half of any financial year, Parliament was informed earlier this month.
Official data also show that gross FDI inflows have risen steadily from over $34 billion in 2012–13 to more than $80 billion in 2024–25. Additionally, India recorded a strong rebound in FDI during the second quarter of the current financial year, with inflows rising over 18% year-on-year to $35.18 billion during April–September 2025.
The rising trend in repatriation underscores that India is not only attracting foreign capital but is also generating robust returns for global investors, reinforcing its standing as a dependable investment destination. The government has further been leveraging free trade agreements to promote export diversification and draw long-term investments into key sectors of the economy.
