India’s foreign exchange reserves climbed to a historic high of $720.5 billion in the week ended April 4, 2026, data released by the Reserve Bank of India showed on Friday, reinforcing the country’s strong external sector position and providing ample cover against global headwinds.
The reserves rose by $4.2 billion in the week, driven by an increase in foreign currency assets—the largest component—which now stand at $638.7 billion. Gold reserves also rose to $68.9 billion, while Special Drawing Rights held with the IMF increased marginally to $18.2 billion.
At $720 billion, India’s reserves provide approximately 11 months of import cover, well above the internationally accepted minimum of three months and among the highest in emerging markets. The country now holds the fourth-largest reserve pool globally, behind China, Japan, and Switzerland.
The milestone reflects several positive trends: record software services exports of $320 billion in FY25, strong remittance inflows of $115 billion, buoyant FII equity inflows, and disciplined current account management. The current account deficit narrowed to 1.1% of GDP in FY26, its lowest level in six years.
RBI Governor Sanjay Malhotra attributed the forex strength to ‘improving macroeconomic fundamentals and India’s growing stature as a preferred destination for global capital.’ The central bank has been opportunistically buying dollars in the open market to build reserves without allowing excessive currency appreciation.
The rupee has remained relatively stable in a ₹83-85 range against the dollar over the past six months, a managed stability that has boosted investor confidence and reduced hedging costs for Indian companies with foreign currency debt.
