Current Affairs - Economy - Discussion

India’s foreign exchange reserves crossed the $700 billion mark in October 2025, reaching $702 billion according to the Reserve Bank of India (RBI). This milestone reflects strong macroeconomic fundamentals and resilience amid global financial volatility. The rise was largely driven by an increase of $6.1 billion in gold reserves, supported by higher global gold prices, even as foreign currency assets declined due to RBI’s market interventions. Maintaining such high reserves provides India with a crucial financial cushion against global uncertainties, stabilises the rupee, enhances investor confidence, and ensures sufficient import cover for over ten months, reinforcing economic stability.