India’s foreign exchange reserves have climbed to a record $729.33 billion, supported by strong capital inflows and measures introduced by the central bank to increase foreign-currency deposits.
According to data from the Reserve Bank of India (RBI), reserves rose by $12.4 billion in the week ending August 21, 2026, marking the eighth consecutive week of increases. The reserves have gained about $63 billion over the eight-week period.
The increase was driven mainly by a $9.5 billion rise in foreign currency assets and a $2.8 billion increase in the value of gold holdings.
India introduced several measures in June to encourage dollar inflows, including incentives for overseas borrowing by state-owned companies and banks, as well as facilities allowing banks to raise foreign-exchange deposits.
The RBI received nearly $73 billion through these schemes between June 5 and August 21, including around $65 billion from deposits by non-resident Indians.
Economists said the strong inflows, combined with the RBI’s intervention in the foreign-exchange market, have helped strengthen India’s reserve position and support the Indian rupee.
The latest figures show that India’s reserves consist of approximately $591.33 billion in foreign currency assets, $114.22 billion in gold, $18.85 billion in Special Drawing Rights (SDRs), and $4.93 billion in its IMF reserve tranche position.
The previous record was reached in February, before the latest eight-week surge.
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