India’s Forex Reserves Rise $938 Million To $682.32 Billion, RBI Sees FDI Inflows Crossing $100 Billion In FY27

Mumbai: India’s foreign exchange reserves increased by USD 938 million to reach USD 682.321 billion in the week ended May 28, according to data released by the Reserve Bank of India (RBI).

The rise comes after a sharp decline of USD 7.511 billion in the previous reporting week, when reserves had dropped to USD 681.384 billion.

Despite recent fluctuations, India continues to hold one of the largest foreign exchange reserve stocks in the world.

Still Below Record High

The current reserve level remains below the all-time high of USD 728.494 billion recorded in the week ended February 27.

In recent months, reserves faced pressure due to geopolitical tensions in the Middle East. The RBI had intervened in the foreign exchange market by selling dollars to support the rupee and reduce excessive currency volatility.

Prime Minister Narendra Modi has also urged citizens since May 11 to help conserve foreign exchange by reducing foreign travel, limiting fuel consumption and avoiding gold purchases for one year.

Foreign Currency Assets Increase

The biggest contributor to the rise in reserves was the increase in foreign currency assets (FCAs).

FCAs grew by USD 3.116 billion to USD 546.148 billion during the reporting week.

These assets form the largest portion of India’s forex reserves and include holdings in major currencies such as the euro, pound sterling and Japanese yen. Changes in their value are influenced by movements in global currency markets.

Gold Reserves Decline

While FCAs increased, India’s gold reserves declined.

The value of gold holdings fell by USD 2.186 billion to USD 112.6 billion during the week.

Meanwhile, Special Drawing Rights (SDRs) with the International Monetary Fund remained unchanged at USD 18.747 billion.

RBI Positive on Foreign Investment

The RBI also expressed confidence about future foreign investment inflows.

Deputy Governor Poonam Gupta said gross foreign direct investment (FDI) inflows are expected to exceed USD 100 billion in FY27.

She noted that India received USD 95 billion in gross FDI inflows in FY26 and said the figure could rise to USD 110-USD 120 billion in the current financial year, supported by strong private investment and a rising investment-to-GDP ratio.