India’s Forex Reserves, 2024: Overview, Trend, latest data
Forex reserves of India have decreased to $644.3 billion as of December 20, 2024. This marks a significant decline since the all-time high of $705 billion USD, recorded in September 2024.
The forex reserves have been on a consistent downward trend since September which is raising concerns about India’s external financial stability and macroeconomic indicators.
What is Forex Reserve
Forex reserves are external assets held by a country’s central bank, such as the Reserve Bank of India (RBI), in various forms like foreign currencies such as US dollar or Euro , gold, Special Drawing Rights (SDRs), and the International Monetary Fund (IMF) reserves
Forex reserves act as a buffer to safeguard the economy against external shock, and currency volatility, and meet international payment obligations.
India’s Forex Reserve in December 2024
Forex reserves of India is 644 billion USD or 54 lac crores as on 20th December, 2024. it includes reserve in USD, gold, SDR and IMF reserve.
| Forex Component | Reserves in USD(billions) | Reserves in INR(Lakh crores) | % share |
|---|---|---|---|
| Foreign Currency Assets | 556.5 | 47.3 | 86.37% |
| Gold | 65.7 | 5.58 | 10.19% |
| Special Drawing Rights (SDRs) | 17.8 | 1.52 | 2.66% |
| Reserve Position in the IMF | 4.2 | 0.35 | 0.6% |
| Total Forex Reserves | 644.3 | 54.7 | 100% |
Composition of India’s Forex Reserves
Forex reserve include Foreign Currencies like USD, Euro, British Pound sterling and SDR, gold etc.
Foreign Currency Assets (FCA)
The largest component, accounting for over 86% of the total reserves, primarily held in US dollars and other major currencies like Euro, Pound sterling, Australian Dollar, Japanese Yen, and Other currencies.
Gold Reserve
RBI hold physical gold as part of its forex reserves. it account for over 10% of total Reserve.
Special Drawing Rights (SDRs)
SDRs are an international reserve asset created by the International Monetary Fund (IMF). They are based on a basket of five major currencies: USD, EUR, CNY, JPY, and GBP. The IMF periodically allocates SDRs to member countries.
IMF Reserve Position
his is India’s reserve quota with the International Monetary Fund (IMF). It represents a portion of the country’s financial relationship with the IMF.
Indian Forex Reserves: 2000 to 2024
| Year(Jan) | Billion(USD) | % change |
|---|---|---|
| 2000 | 35.2 | |
| 2001 | 40.5 | 15.1% |
| 2002 | 49.2 | 21.5% |
| 2003 | 72.4 | 47.2% |
| 2004 | 103 | 42.3% |
| 2005 | 129 | 25.2% |
| 2006 | 140 | 8.5% |
| 2007 | 177 | 26.4% |
| 2008 | 285 | 61.0% |
| 2009 | 252 | -11.6% |
| 2010 | 281 | 11.5% |
| 2011 | 299 | 6.4% |
| 2012 | 294 | -1.7% |
| 2013 | 296 | 0.7% |
| 2014 | 292 | -1.4% |
| 2015 | 322 | 10.3% |
| 2016 | 348 | 8.1% |
| 2017 | 359 | 3.2% |
| 2018 | 418 | 16.4% |
| 2019 | 397 | -5.0% |
| 2020 | 461 | 16.1% |
| 2021 | 584 | 26.7% |
| 2022 | 633 | 8.4% |
| 2023 | 562 | -11.2% |
| 2024 | 617 | 9.8% |
Note: Data is from January of Each Year
Source: RBI
