India’s foreign exchange reserves rose sharply by $14.17 billion to reach $701.36 billion, marking one of the biggest weekly increases in recent months. The surge was driven by strong capital inflows, robust foreign investment, and favorable currency movements, reinforcing India’s financial stability and global economic resilience.
India’s foreign exchange reserves recorded a significant rise, crossing the $700 billion mark for the first time. According to the Reserve Bank of India’s latest data, reserves jumped by $14.17 billion in the week ending January 17, 2026, taking the total to $701.36 billion. This milestone reflects the strength of India’s external sector and its ability to withstand global financial volatility.
Key highlights from the announcement include
-
Forex reserves surged by $14.17 billion in a single week.
-
Total reserves now stand at $701.36 billion, the highest ever recorded.
-
Increase attributed to strong foreign portfolio inflows and robust FDI.
-
Currency appreciation against the US dollar contributed to the rise.
-
Reserves provide a buffer against external shocks and global uncertainties.
-
India’s reserves include foreign currency assets, gold holdings, SDRs, and IMF reserve positions.
Analysts note that the sharp rise in reserves comes at a crucial time when global markets face uncertainty due to geopolitical tensions and fluctuating commodity prices. The strong inflows into Indian equities and debt markets, coupled with resilient domestic growth, have boosted investor confidence. The appreciation of the rupee against the US dollar also played a role in enhancing the value of reserves.
The record reserves are expected to strengthen India’s position in global trade negotiations and provide greater flexibility in managing external debt. They also serve as a safeguard against potential capital outflows, ensuring stability in the financial system. Economists believe that the reserves will support India’s infrastructure push, currency stability, and long-term growth trajectory.
India’s achievement of crossing the $700 billion mark underscores its growing economic clout and resilience in the face of global challenges. The reserves not only reflect strong macroeconomic fundamentals but also highlight India’s attractiveness as a destination for global capital.
Sources: Reserve Bank of India, Economic Times, Business Standard, Reuters