The Indian economy is creating new records every day and another great moment of pride for the country, when India was ranked among the top five countries with largest foreign exchange reserves, surpassing the United States, Germany and even Canada. India’s foreign exchange reserves are now at a record level.
India has become the fourth country with the largest foreign exchange reserves in the world. There was a time when the Indian economy was considered part of the ‘fragile five’. But it has now emerged from the ‘Fragile Five’ to become the fastest-growing major economy with record foreign exchange reserves.
india foreign exchange reserves
Today India is not only the fifth largest economy in the world but has also created a new record in terms of foreign exchange reserves. For the first time in history, India’s foreign exchange reserves have exceeded $700 billion. India’s foreign exchange reserves rose by $12.588 billion over the week to a new all-time high of $704.885 billion, according to the latest estimates from the Reserve Bank of India.
India now has the fourth largest foreign exchange reserves in the world after China, Japan and Switzerland. It is worth noting here that the country’s foreign exchange reserve figures have declined from last month’s high. The recent drop in reserves is likely due to the RBI’s intervention to prevent a sharp fall in the rupee. The high cushion of foreign exchange reserves helps insulate domestic economic activity from global shocks.
Fastest growing large economy
The International Monetary Fund (IMF) recently noted in a report that India remains the world’s fastest growing major economy amid geopolitical crisis and economic slowdown across the globe. The IMF said India’s growth rate has risen by 0.2 percentage points to 7.0 percent in 2024 from its April forecast.
“These trends are expected to continue in 2025,” the International Monetary Fund said in its report. With this, India will continue to be the world’s fastest growing major economy.”
