India's Forex Reserves Near Record High, Jump $5.17 Billion To $696.66 Billion
Last Updated:
India's forex reserves surge $5.17 billion to $696.656 billion as of June 6, 2025, nearing the all-time high of $704.89 billion. RBI's gold reserves rise $1.58 bn to $85.89 bn.
Forex Reserves Update: India's foreign exchange (forex) reserves surged by $5.17 billion to $696.656 billion during the week ended June 6, 2025, according to the official data announced on Friday, June 13. The forex kitty is just 1.2% away from its all-time high level of $704.89 billion, recorded in September 2024.
In the previous week ended May 30, the forex kitty had declined by $1.23 billion.
According to the latest RBI data, India's foreign currency assets (FCA), which is a major portion of forex reserves, by $3.472 billion to $587.687 billion.
The country's gold reserves also increased by $1.583 billion between May 30 and June 6 to $85.888 billion.
The share of gold maintained by the RBI in its kitty has almost doubled since 2021, as central banks globally have increasingly accumulated safe-haven gold in their forex reserves.
In 2023, India added around $58 billion to its foreign exchange reserves, contrasting with a cumulative decline of $71 billion in 2022. In 2024, the reserves rose by a little over $20 billion.
Foreign exchange reserves, or FX reserves, are assets held by a nation's central bank or monetary authority, primarily in reserve currencies such as the US Dollar, with smaller portions in the Euro, Japanese Yen, and Pound Sterling.
The RBI often intervenes by managing liquidity, including selling dollars, to prevent steep Rupee depreciation. The RBI strategically buys dollars when the Rupee is strong and sells when it weakens.
Last week, RBI Governor Sanjay Malhotra said the foreign exchange kitty is sufficient to meet 11 months of the country's imports and about 96 per cent of external debt.
First Published:
June 13, 2025, 17:50 IST
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Time of India
22 minutes ago
- Time of India
Household savings in India drop to 18.1% of GDP in FY24: CareEdge Ratings
India's household savings continued their downward trajectory for the third straight year, slipping to 18.1 per cent of GDP in financial year 2024 (FY24), as per CareEdge Ratings. The report added that Gross domestic savings declined to 30.7 per cent of GDP in FY24 from 32.2 per cent in FY15. On the other hand, household financial liabilities surged to 6.2 per cent of GDP, nearly doubling over the past decade, reflecting growing reliance on credit amid consumption needs, the report observed. It highlights that despite the concerning savings trend, rural India offers a silver lining. Wage growth for rural male workers rose by 6.1 per cent year-on-year in February, outpacing rural inflation for the fourth consecutive month. This, along with easing food inflation and favourable agricultural prospects, is supporting rural demand recovery, the report added. Rural consumer confidence , hovering around the neutral 100 mark, reflects a cautious optimism. In contrast, urban consumer confidence remains in pessimistic territory, though expectations for the year ahead remain upbeat across both segments, the report added. Live Events In the broader economy, labour cost growth for major IT firms has slowed significantly from a peak of 26 per cent in Q3 FY23 to just 4 per cent in Q3 FY25, highlighting a broader trend of cost rationalisation in the corporate sector, as per the observations of the report. On the inflation front, CPI eased to 3.2 per cent in April 2025, the lowest since August 2019. However, high prices of edible oils (17.4 per cent) and fruits (13.8 per cent) continue to keep overall food inflation in check. The upcoming Rabi harvest, healthy reservoir levels, and forecast of above-normal monsoon rains are expected to further support food price stability, the report added. "Going ahead, RBI policy rate cuts , lower tax burden and continued easing of price pressures remain key tailwinds for the broad-based demand recovery," the report said As per the government data, the Indian economy grew by 6.5 per cent in real terms in the recently concluded financial year 2024-25. Economic Times WhatsApp channel )
India.com
an hour ago
- India.com
From Tehran to Tel Aviv: How the Iran–Israel War Shakes Up India's Economy
Israel-Iran war India's energy story is deeply tied to the geopolitics of West Asia. As tensions escalate between Israel and Iran, the ripple effects are already being felt in the Indian economy — from rising oil bills and currency fluctuations to opportunities and challenges for Indian workers abroad. India relies heavily on imports to meet its energy needs. Nearly 90% of the 6.5 million barrels of crude oil it consumes daily is imported. Alongside this, India brings in around 66% of its annual 36 million tons of LPG and about 50% of the 72 billion cubic meters of natural gas, mostly in the form of liquefied natural gas (LNG). To understand the impact of this dependency, it's important to know what these fuels are: LPG (Liquefied Petroleum Gas) is a mix of propane and butane stored under pressure, widely used in household gas cylinders for cooking, especially in rural and urban homes. is a mix of propane and butane stored under pressure, widely used in for cooking, especially in rural and urban homes. Natural gas , mainly methane, is used in its gaseous form for piped gas connections , industries , and power generation . , mainly methane, is used in its gaseous form for , , and . LNG (Liquefied Natural Gas) is simply natural gas cooled to -162°C to make it easier to transport. Once delivered, it is converted back to gas for use in factories, power plants, and urban distribution networks. Global fuel prices directly affect India's trade deficit and the value of the Rupee. For instance, earlier this year in May, the price of Brent crude oil dropped from $82 to around $60 per barrel, reducing India's import costs. As a result, the Rupee strengthened, with the exchange rate improving from ₹88 to ₹84 per US dollar. However, this relief was short-lived. Following media reports and the eventual outbreak of conflict between Israel and Iran, oil prices surged by 20%, hitting $74 per barrel. If prices remain above $80 for the rest of 2025, India's import bill will rise sharply, increasing the trade deficit — which was already $283 billion last year. The Rupee has already weakened, now standing at ₹86 per US dollar. This year alone, India is expected to import 5.7 million barrels of crude per day, 24 million tons of LPG, and over 36 billion cubic meters of LNG. In the financial year 2024–25, the country spent $137 billion on crude oil imports and another $36 billion on LNG and LPG, with the average crude price at $81 per barrel. A continued rise above $85 per barrel could push these numbers even higher. Although India's foreign exchange reserves remain strong at $697 billion, a sustained increase in energy costs could put pressure on the overall economy. The conflict also highlights the strategic dimensions of India's relationships in the region. India's trade with Israel is about three times larger than with Iran, totaling $4.5 billion in 2023–24, with over half of that in petroleum products. More importantly, India is the largest buyer of Israeli military equipment, and Israel ranks as India's second-biggest defence supplier after Russia. Key imports include missiles, drones, radars, and electronic warfare systems, with several joint ventures and defence manufacturing units set up in India through Israeli partnerships. In contrast, India's trade with Iran has declined sharply since 2019, when the U.S. ended a waiver that allowed India to buy Iranian oil despite sanctions. Back in 2018–19, India's oil imports from Iran were worth $12 billion, accounting for about 66.7% of total bilateral trade. Today, total trade between the two stands at just $2 billion. Even now, India exports key food items like rice ($734 million), soybean meal ($97 million), and bananas ($52 million) to Iran, while importing chemicals, LPG, and petroleum coke. Earlier this year, the U.S. sanctioned four Indian shipping companies — Austenship Management, BSM Marine, Cosmos Lines, and Flux Maritime — for their alleged involvement in the trade and transport of Iranian oil. This reflects how sensitive the issue of Iranian energy remains in global politics. Yet, rising oil prices could bring unexpected benefits too. Oil-rich Middle Eastern countries like the UAE, Saudi Arabia, Kuwait, and Qatar stand to gain from higher export revenues — and when these nations earn more, they tend to invest more in infrastructure, services, and domestic development. This can increase demand for migrant workers, especially from India. Currently, around nine million Indians — mostly semi-skilled and unskilled workers — live and work in these countries. Many are employed in construction, domestic work, and maintenance services. With rising oil income, these countries are likely to expand projects and hire more workers, creating new opportunities for Indian migrants. For states like Kerala, this means even more. About 10% of Kerala's 35 million residents work in the Middle East. The money they send home — foreign remittances — makes up around 20% of the state's income. It plays a crucial role in supporting millions of families, funding education, healthcare, and housing. In short, rising energy prices driven by the Israel-Iran war are a double-edged sword for India. While they increase the cost of imports and weaken the Rupee, they may also open up more job opportunities abroad and boost remittance flows — offering some balance in a complex global equation. (Girish Linganna is an award-winning science communicator and a Defence, Aerospace & Geopolitical Analyst. He is the Managing Director of ADD Engineering Components India Pvt. Ltd., a subsidiary of ADD Engineering GmbH, Germany. Contact: girishlinganna@
India Gazette
2 hours ago
- India Gazette
Affordable housing supply drops 54% in Tier 2 cities in Q1 2025
New Delhi [India], June 15 (ANI): The supply of new affordable housing in India's top 15 tier 2 cities witnessed a steep decline of 54 per cent in January-March quarter (Q1) of the current year, indicating a shrinking Focus of developers on the affordable housing segment. The affordable housing segment is defined as the properties priced under Rs 50 lakh. Real estate data analytics firm PropEquity observed in its latest report that housing supply in India's top 15 tier 2 cities fell by a whopping 35 per cent to 30,155 units in January-March period of 2025, with 48 per cent of the launches in the Rs 50 lakh-1 crore price range. The supply stood at 45,901 units with 36 per cent of the launches in price range Rs 50L-1cr. in Q1 2024, the PropEquity data shows. Bhubaneshwar witnessed the highest decline at 72 per cent to 772 units in Q1 2025 while Nashik saw the least decline at 2 per cent to 2466 units. The report further added that Eastern and Central India, with 68 per cent fall in new launches in Q1 2025, saw the highest decline, followed by 55 per cent in Northern India, 28 per cent in Western India and 26 per cent in Southern India. The seven State Capitals in the top 15 tier 2 cities saw 43 per cent decline in supply in Q1 2025. Samir Jasuja, Founder and CEO, PropEquity said, 'The decline in supply is a result of cautious approach and shifting priorities by developers. Financially robust developers with strong balance sheet look to launch premium homes in order to increase their profit margin. As a result, supply of homes under Rs 50 lakh has seen a consistent decline due to its unviability.' 'Meanwhile, homes priced between Rs 1-2 crore have not only seen a 17 per cent Y-o-Y growth in supply but also its supply share increasing from 18 per cent to 23 per cent,' Jasuja added. As per Jasuja, with home loan rates hovering around 8-8.5 per cent, the recent reduction of 50bps in repo rate by the RBI will further drive down the home loan rates, thereby providing an impetus in the Rs 50L-2cr priced homes in tier 2 cities. 'The tier 2 cities present a huge opportunity for corporates and developers as massive infrastructure development and government's focus on making these cities as growth drivers will enable end-user demand,' he added. Housing units priced under Rs 2 crore accounted for 95 per cent of the total supply in Q1 2025, up from 87 per cent in the same period last year. The supply of units priced under Rs 50 lakh, more than halved to 7124 units in Q1 2025 as against 15420 units in the same period last year. Its share to total supply fell from 33 per cent to 24 per cent in Q1 2025. Similarly, supply of units priced between Rs 50 lakh and Rs 1 crore dipped by 12 per cent and its share rose from 36 per cent to 48 per cent in Q1 2025. The supply of units priced between Rs 1-2 crore dipped by 17 per cent and its share rose from 18 per cent to 23 per cent in Q1 2025. Supply of units priced Rs 2 crore and above dipped by 73 per cent in Q1 2025 and its share dipped from 13 per cent to 5 per cent in Q1 2025. State Capitals saw 90 per cent drop in supply of units priced under Rs 50 lakh and 13 per cent drop in supply of units priced between Rs 50L-Rs 1 crore in Q1 2025. However, supply of units priced between Rs 1-2 crore rose by 31 per cent, the report added. (ANI)
