- India's forex reserves hit a record $785.7 billion as of September 4
- Reserves increased by $44.9 billion in the week ended September 4
- Foreign currency assets rose by $47.5 billion, gold reserves fell by $2.6 billion
India's foreign exchange reserves have reached a record $785.7 billion, helping the country climb to the fourth spot among the world's largest reserve holders. The latest Reserve Bank of India (RBI) data show reserves rose by $44.9 billion in the week ended September 4, the biggest weekly increase in the series and enough to push the country's reserve stockpile to an all-time high.
The latest surge caps a two-decade expansion in India's reserve holdings. Weekly RBI data show the country's forex reserves stood at about $141.2 billion in 2005. Since then, reserves have increased more than five-fold, rising steadily through periods of global economic uncertainty, including the 2008 financial crisis, the Covid-19 pandemic and subsequent market volatility.
The sharp rise in the latest week was driven primarily by an increase in foreign currency assets, the largest component of reserves. RBI data show foreign currency assets rose by $47.5 billion during the week. Gold reserves, however, declined by about $2.6 billion, partially offsetting the increase.
As of September 4, India's reserves consisted of:
- Foreign Currency Assets: $648.2billion
- Gold: $113.8 billion
- Special Drawing Rights (SDRs): $18.8 billion
- Reserve Position at the IMF: $4.9 billion
The latest jump also stands out historically. RBI data stretching back to 2005 show previous major weekly increases were far smaller. The recent gain of $44.9 billion was nearly double the previous large spike seen in March 2025 and far above the gains recorded during earlier episodes of reserve accumulation.
The rise has also reshaped India's position in the global rankings. According to data by Trading Economics, only China ($3.85 trillion), Japan ($1.29 trillion) and Switzerland ($939 billion) currently hold larger forex reserves. India has moved ahead of countries such as Russia ($761 billion), Taiwan ($597 billion) and Saudi Arabia ($487 billion).
Forex reserves are often seen as a country's first line of defence against external shocks. They help central banks manage currency volatility, meet import and debt obligations and reassure investors during periods of global uncertainty. With reserves now approaching the $800-billion mark, India is not only sitting on its largest-ever buffer but has also joined an elite group of nations with some of the biggest reserve stockpiles in the world.
