Latest news with #ECBs
Gulf Today
a day ago
- Business
- Gulf Today
India's forex reserves stood at $691.5 billion, says RBI chief
India's foreign exchange (forex) reserves stood at $691.5 billion, as of May 30, and are sufficient to fund more than 11 months of goods imports and about 96 per cent of external debt outstanding, RBI Governor Sanjay Malhotra said on Friday. For the week ended May 30, the reserves dropped by $1.2 billion to break an 8-week rising trend. India's foreign exchange reserves had recorded a robust increase of $6.99 billion to $692.72 billion in the preceding week ended May 23. Changes in foreign currency assets, expressed in dollar terms, include the effect of appreciation or depreciation of other currencies held in the reserves. External commercial borrowings (ECBs) and non-resident deposits have seen higher net inflows compared to the previous year. The Reserve Bank of India (RBI) Governor said: 'Overall, India's external sector remains resilient as key external sector vulnerability indicators continue to improve. We remain confident of meeting our external financing requirements.' The latest RBI data showed that India's foreign currency assets (FCA), the largest component of foreign exchange reserves, stood at $586.167 billion. The RBI releases forex data every Friday. According to RBI data, India's forex reserves are still quite close to its all-time high of $704.89 billion, reached in September 2024. In 2024, the reserves rose by a little over $20 billion. Central banks worldwide are increasingly accumulating gold as a safe-haven asset in their foreign exchange reserves amid uncertainty created by geopolitical tensions. Indo-Asian News Service
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Business Standard
2 days ago
- Business
- Business Standard
Lower net FDI due to repatriation signals mature market, says RBI governor
The sharp drop in net foreign direct investment (FDI) in FY25 was due to repatriation, which is a sign of a mature market where investors can enter and exit smoothly, RBI governor Sanjay Malhotra said while announcing the monetary policy decision on Friday. Net FDI flows moderated to $0.4 billion in FY25, down from $10.1 billion the previous year, data released by the RBI earlier this month showed. Gross FDI inflows remained strong, rising by around 14 per cent to $81.0 billion in 2024-25 from $71.3 billion a year earlier. 'It is germane to point out that this moderation [of net FDI] is on account of a rise in repatriation and net outward FDI while gross FDI actually increased by 14 per cent. Rise in repatriation is a sign of a mature market where foreign investors can enter and exit smoothly, while high gross FDI indicates that India continues to remain an attractive investment destination,' Malhotra said. He also said external commercial borrowings (ECBs) and non-resident deposits witnessed higher net inflows compared to the previous year. Net inflows under ECBs to India increased to $18.7 billion during 2024-25 compared with $3.6 billion a year earlier. In April 2025, net ECB to India rose to $2.8 billion from $0.5 billion a year earlier. Non-resident deposits recorded a higher net inflow of $16.2 billion in 2024-25 compared with $14.7 billion a year earlier. 'Overall, India's external sector remains resilient as key external sector vulnerability indicators continue to improve. We remain confident of meeting our external financing requirements,' he said. Foreign portfolio investment (FPI) to India dropped sharply to $1.7 billion in 2024-25, as foreign portfolio investors booked profits in equities. According to the RBI's State of Economy report, more than 60 per cent of gross FDI inflows in FY25 were in manufacturing, financial services, electricity and other energy, and communication services sectors. Singapore, Mauritius, the UAE, the Netherlands and the United States accounted for more than 75 per cent of the flows. Repatriation and disinvestment by those who made direct investments in India increased to $51.5 billion in FY25 from $44.5 billion in FY24 and $29.3 billion in FY23. Overseas investments made by Indian companies (outward FDI) increased to $29.2 billion in FY25 from $16.7 billion in FY24 and $14 billion in FY23. Singapore, the US, the United Arab Emirates, Mauritius and the Netherlands together accounted for more than half of the rise in outward FDI, the report said.
Time of India
2 days ago
- Business
- Time of India
India continues to remain an attractive investment destination, says RBI governor
India continues to draw strong foreign investor interest, with gross foreign direct investment (FDI) inflows rising 14 per cent to USD 81 billion in FY2024-25, Reserve Bank of India Governor Sanjay Malhotra said Friday, saying that India continues to be an attractive investment destination. The rise in gross FDI, from USD 71.3 billion a year ago, shows growing confidence in India's economic fundamentals. However, net FDI inflows moderated to USD 0.4 billion in 2024-25 from USD 10.1 billion a year ago, governor said that it is sign of a maturing economy where capital inflows and outflows coexist, offering investors both entry and exit flexibility. 'Rise in repatriation is a sign of a mature market where foreign investors can enter and exit smoothly, while high gross FDI indicates that India continues to remain an attractive investment destination,' said governor. Other capital flows also increased. Net inflows through external commercial borrowings (ECBs) surged to USD 18.7 billion in FY2024-25, compared with just USD 3.6 billion the previous year. Non-resident deposits recorded higher net inflows of USD 16.2 billion, up from USD 14.7 billion. Despite recent outflows in foreign portfolio investment (FPI), USD 2.1 billion in FY2025-26 until June 4, the country's external buffers remain solid. Foreign exchange reserves stood at USD 691.5 billion as of May 30, sufficient to cover over 11 months of goods imports and nearly 96 per cent of external debt. Also the current account deficit remained contained at 0.7 per cent of GDP in FY2023-24. External debt-to-GDP rose marginally to 19.1 per cent as of December 2024, from 18.5 per cent in March 2024. 'Overall, India's external sector remains resilient as key external sector vulnerability indicators continue to improve,' the governor said. 'We remain confident of meeting our external financing requirements.'
India Gazette
3 days ago
- Business
- India Gazette
India's forex reserves sufficient to meet 11 months of imports, 96% of external debt outstanding: RBI Governor
Mumbai (Maharashtra) [India], June 6 (ANI): India's foreign exchange reserves (Forex) are sufficient to meet 11 months of the country's imports and about 96 per cent of external debt, said Governor Sanjay Malhotra while announcing the outcome of the Monetary Policy Committee (MPC) decisions on Friday. The RBI governor expressed confidence, stating that India's external sector is resilient and key external sector vulnerability indicators are improving. 'As of May 30, 2025, India's foreign exchange reserves stood at USD 691.5 billion. These are sufficient to fund more than 11 months of goods imports, and about 96 per cent of external debt outstanding,' said Governor Sanjay Malhotra. On the other hand, External commercial borrowings (ECBs) and non-resident deposits have seen higher net inflows compared to the previous year. RBI governor added 'Overall, India's external sector remains resilient as key external sector vulnerability indicators continue to improve. We remain confident of meeting our external financing requirements.' The latest RBI data showed that India's foreign currency assets (FCA), the largest component of foreign exchange reserves, stood at USD 586.167 billion. The gold reserves currently amount to USD 83.582 billion, according to RBI data. The RBI releases forex data on every Friday. As per the data released by the Central Bank, India's forex kitty is quite close to its all-time high of USD 704.89 billion, reached in September 2024. In 2023, India added around USD 58 billion to its foreign exchange reserves, contrasting with a cumulative decline of USD 71 billion in 2022. In 2024, the reserves rose by a little over USD 20 billion. Central banks worldwide are increasingly accumulating safe-haven gold in their foreign exchange reserves kitty, and India is no exception. The share of gold maintained by the Reserve Bank of India (RBI) in its foreign exchange reserves has almost doubled since 2021. 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. (ANI)
Time of India
3 days ago
- Business
- Time of India
India continues to remain an attractive investment destination, says RBI governor
India continues to draw strong foreign investor interest, with gross foreign direct investment ( FDI ) inflows rising 14% to $81 billion in FY2024-25, Reserve Bank of India Governor Sanjay Malhotra said Friday, saying that India continues to be an attractive investment destination. The rise in gross FDI, from $71.3 billion a year ago, shows growing confidence in India's economic fundamentals. However, net FDI inflows moderated to $ 0.4 billion in 2024-25 from $ 10.1 billion a year ago, governor said that it is sign of a maturing economy where capital inflows and outflows coexist, offering investors both entry and exit flexibility. 'Rise in repatriation is a sign of a mature market where foreign investors can enter and exit smoothly, while high gross FDI indicates that India continues to remain an attractive investment destination,' said governor. Other capital flows also increased. Net inflows through external commercial borrowings (ECBs) surged to $18.7 billion in FY2024-25, compared with just $3.6 billion the previous year. Non-resident deposits recorded higher net inflows of $16.2 billion, up from $14.7 billion. Despite recent outflows in foreign portfolio investment (FPI), $2.1 billion in FY2025-26 until June 4, the country's external buffers remain solid. Foreign exchange reserves stood at $691.5 billion as of May 30, sufficient to cover over 11 months of goods imports and nearly 96% of external debt. Also the current account deficit remained contained at 0.7% of GDP in FY2023-24. External debt-to-GDP rose marginally to 19.1% as of December 2024, from 18.5% in March 2024. 'Overall, India's external sector remains resilient as key external sector vulnerability indicators continue to improve,' the governor said. 'We remain confident of meeting our external financing requirements.'
