India becomes the 5th largest foreign exchange reserves holder in World

India has emerged as the fifth largest foreign exchange reserves holder in the world after China, Japan, Switzerland and Russia.

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In a written reply in Lok Sabha, the Minister of State for Finance Pankaj Chaudhary said the country’s forex reserves stood at around 609 billion Dollars on 25th of last month.

The country’s foreign exchange reserves position is comfortable in terms of import cover of more than 18 months and provides cushion against unforeseen external shocks.

The government and Reserve Bank of India are closely monitoring the emerging external position calibrating policies or regulations to support robust macroeconomic growth.

In 2020-21, India’s balance of payments recorded surplus in both current account and capital account which contributed to the increase in foreign exchange reserves during the year.