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India’s Forex Reserves Near Record High at $701 Billion, Economic Survey Reveals
India's economy has once again demonstrated its strength. In 2024-25, the country received $135.4 billion in remittances, while foreign exchange reserves reached $701 billion.
The Indian economy has once again proved its strength. The Economic Survey states that India is not only the biggest remittance receiving country, but it has also achieved near record levels of foreign exchange reserves.
India received a total of $135.4 billion in remittances in 2024-25. Most importantly, the share of developed countries in the inflow of remittances to India is rising. This points to a substantial increase in the demand and earnings of Indian skilled and professional manpower working in these countries.
India has accumulated foreign exchange reserves of $701.4 billion as of January 16. The foreign exchange reserves can finance the country's imports for about 11 months. The reserves also account for 94% of the total outstanding foreign debt of the country.
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Foreign exchange reserves can be used to provide a buffer against any global economic crisis. India has seen a significant inflow of foreign direct investment (FDI) in South Asia. The country surpassed Indonesia and Vietnam in terms of investment. In terms of greenfield investment, India ranked fourth globally with over 1,000 new projects in 2024. India received the highest digital investment of $114 billion between 2020 and 2024.
While many countries around the world are currently grappling with debt crises, India is in a very good position. The country's external debt-to-GDP ratio is only 19.2%, representing less than 5% of total debt. Manufacturing costs must be reduced to increase exports. Innovation and productivity can strengthen the country's currency and GDP.
