January 31, 2022
1 min read

India fourth largest forex holder in world

India’s salient external sector sustainability indicators are strong and much improved as compared to what they were during the global financial crisis or taper episode of 2013…reports Asian Lite News

As of end-November 2021, India was the fourth-largest foreign exchange reserves holder in the world after China, Japan, and Switzerland, the Economic Survey 2021-22 has noted.

Despite all the disruptions caused by the global pandemic, India’s balance of payments remained in surplus throughout the last two years.

This allowed the Reserve Bank of India to keep accumulating foreign exchange reserves, which stands at $634 billion on December 31, 202). This is equivalent to 13.2 months of imports and higher than the country’s external debt.

A sizeable accretion in reserves led to an improvement in external vulnerability indicators such as foreign exchange reserves to total external debt, short-term debt to foreign exchange reserves.

India’s salient external sector sustainability indicators are strong and much improved as compared to what they were during the global financial crisis or taper episode of 2013.

For instance, the import cover and foreign exchange reserves are more than double now. The combination of high foreign exchange reserves, sustained foreign direct investment, and rising export earnings will provide a good buffer against any liquidity tapering/monetary policy normalisation in 2022-23.

ALSO READ-Economic Survey showcases country’s development via satellite imagery

Previous Story

Biden, Emir of Qatar discuss Gulf security

Next Story

Roger Federer hits 21-year low in latest ATP rankings

Latest from Business

EVs Drive Cleaner Cities

Each EV is equipped with GPS tracking for real-time monitoring and efficiently serves the city’s 159.46 square kilometre area The use of electric vehicles (EVs) in household waste collection is ushering in

Residential Market Sees Revival

Sales jump 77% from FY19 to FY25 as luxury housing, office leasing, logistics, and tech-led investments drive real estate recovery. India’s residential real estate market has witnessed a dramatic revival in the

Recovery From Realty Stress Rises

Crisil expects residential demand in these markets to grow by 7–9 per cent in FY26, offering critical support to projects now being revived through restructuring Asset Reconstruction Companies (ARCs) are expected to

Qatar Debut For Tata

Tata Motors emphasised that its international offerings are backed by strong research and development capabilities, with vehicles that are thoroughly tested and adapted to local conditions Tata Motors has unveiled its all-new
Go toTop

Don't Miss

26/11: The tipping point in Indo-Pak relations

Today, as India looks towards Pakistan and demands punishment to

Fiji calls India a special friend and trusted partner

Fiji PM Sitiveni Rabuka said India has stood by us