Mumbai, May 2 (IANS). According to the latest data released by RBI on Friday, India’s foreign exchange reserves have increased to $ 688.13 billion till April 25 in a row.
Foreign exchange reserves increased by $ 1.98 billion during the week.
The foreign exchange component of the store increased by $ 2.17 billion to $ 580.66 billion.
The gold reserves of foreign exchange reserves declined by $ 207 million to $ 84.37 billion, while special drawing rights (SDR) increased by $ 21 million to $ 18.59 billion.
RBI’s re-evaluation and intervention in foreign exchange market to help reduce rupee fluctuations have now reversed in the last two months.
Earlier, in September 2024, the country’s foreign exchange reserves rose to an all -time high of $ 704.885 billion.
The country’s foreign exchange reserves strengthens the rupee against the US dollar, which is good for the economy.
The increase in foreign exchange reserves shows the strong foundation of the economy and gives more scope to the RBI to stabilize it when the rupee fluctuates.
Strong foreign exchange reserves enable RBI to intervene in spot and advance currency markets by issuing more dollars to prevent the rupee from falling.
In contrast, the declining foreign exchange reserves have less space to interfere with the market to support the RBI.
Meanwhile, India’s outskirts have strengthened and the total exports in FY 2024-25 have increased to an all-time high of $ 824.9 billion in FY 2024-25 despite geopolitical uncertainties as well as the slow pace of world trade.
This indicates an increase of 6.01 percent as compared to the previous year’s export figure of $ 778.1 billion.
Service exports continued the pace of development, reaching a historic high of $ 387.5 billion in 2024–25, which is 13.6 percent more than the previous year’s $ 341.1 billion.
The latest data of RBI suggests that for March 2025, service exports stood at $ 35.6 billion, indicating an annual increase of 18.6 percent in March 2024 as compared to $ 30.0 billion.
-IANS
SKT/ABM