The rise was mainly supported by an increase in gold holdings and marginal gains in foreign currency assets.
Foreign currency assets (FCAs), the largest component of the forex kitty, increased by $0.91 billion to $557.79 billion during the week. FCAs include the effect of appreciation or depreciation of non-US currencies such as the euro, pound and yen held in the reserves.
India’s gold reserves rose sharply by $0.76 billion, taking the total gold holdings to $107.74 billion. The steady rise in gold reserves reflects the central bank’s strategy of diversifying assets amid global uncertainty.
Special Drawing Rights (SDRs) with the International Monetary Fund increased slightly by $0.01 billion to $18.74 billion. Meanwhile, India’s reserve position in the IMF also rose marginally by $0.01 billion, reaching $4.69 billion.
In the previous reporting week ending December 5, India’s foreign exchange reserves had risen by nearly $1.03 billion to $687.26 billion.
During that week, gold reserves increased by $1.188 billion to $106.984 billion, while SDRs rose by $93 million to $18.721 billion, the RBI had said earlier.The central bank reiterated that it closely monitors developments in the foreign exchange market and intervenes when necessary to ensure orderly trading conditions and limit excessive volatility.
Meanwhile, India witnessed a sharp surge in foreign direct investment (FDI) commitments during the current financial year.
Total FDI inflows in the first half of FY 2025–26 stood at $50.36 billion, marking a 16 per cent increase compared to $43.37 billion in the same period last year. This is the highest-ever FDI inflow for the first half of a financial year, Parliament was informed earlier this month.
Gross FDI inflows have risen steadily from over $34 billion in 2012–13 to more than $80 billion in 2024–25, official data showed.
India also recorded a strong rebound in FDI during the second quarter of the current financial year, with inflows rising over 18 per cent year-on-year to $35.18 billion during April–September 2025.
The increasing trend of repatriation suggests that India is not only attracting foreign capital but also delivering strong returns to global investors, strengthening its image as a reliable investment destination.
The government has also been using free trade agreements to promote export diversification and attract long-term investment into key sectors of the economy.