New Delhi: India's foreign exchange reserves witnessed a significant increase during the recent fiscal year 2023-24, emerging as the leader among major countries in terms of reserve accumulation, as disclosed in the Economic Survey presented in Parliament on Monday.
The accumulation of the foreign exchange fund witnessed an increase of approximately $68 billion throughout the fiscal year.
A notable stabilization in the current account deficit (CAD) alongside robust capital inflows facilitated the augmentation of India's foreign exchange reserves in the fiscal year 2023-24, as highlighted by the government in the Economic Survey.
These reserves serve as a protective measure, shielding the domestic economy from the adverse impacts of global fluctuations.
"Reserves stand at an impressive level of $653.7 billion on June 21, 2024," the Economic Survey highlighted. This represents a surplus sufficient to sustain over 10 months of projected imports for the fiscal year 2024-25 and surpasses 98 percent of the total external debt outstanding as of March 2024.
India's foreign exchange reserves have consistently been approaching new record levels.
Foreign exchange reserves, commonly referred to as foreign exchange reserves (FX reserves), are assets maintained by a nation's central bank or monetary authority. These reserves are predominantly held in reserve currencies, including the US Dollar, to a lesser extent, the Euro, Japanese Yen, and British Pound Sterling.
The highest point of these reserves was reached in October 2021, followed by a slight decline, attributed in part to the devaluation of exports.
Today, Union Finance Minister Nirmala Sitharaman submitted the Economic Survey 2023-24 to the Parliament. This comprehensive document, produced by the Economic Division within the Department of Economic Affairs, under the guidance of the Chief Economic Adviser, provides a detailed analysis of the economic landscape and a range of key indicators for the period April to March 2023, alongside an outlook for the forthcoming year.
Sitharaman is scheduled to unveil the Union Budget for the fiscal year 2024-25 in the House of Parliament tomorrow. This presentation marks Sitharaman's endeavor to exceed the legacy established by former Prime Minister Morarji Desai, who held the position of Finance Minister from 1959 to 1964 and presented five annual budgets in addition to one interim budget during his tenure. The upcoming budget speech by Sitharaman will mark her seventh endeavor in this capacity.
