Section Article

INDIAS FOREIGN EXCHANGE RESERVE
Author(s): Shail Hada

Abstract
Foreign exchange reserves are critical indicators of a countrys economic stability and financial security. India as one of the fastest-growing emerging economies maintains substantial foreign exchange reserves to manage currency stability meet international payment obligations and safeguard against external shocks. The composition of Indias reserves includes foreign currencies gold Special Drawing Rights (SDRs) from the International Monetary Fund (IMF) and the reserve position with the IMF. Over the last two decades India’s forex reserves have witnessed remarkable growth reflecting the countrys robust macroeconomic policies strong capital inflows and strategic interventions by the Reserve Bank of India (RBI). This research paper investigates the trends determinants and implications of India’s foreign exchange reserves analyzing how global economic fluctuations trade balances remittances foreign direct investment and portfolio flows affect reserve accumulation. Further the paper examines the role of forex reserves in stabilizing the Indian Rupee influencing monetary policy and providing a buffer against external financial crises. By employing statistical analysis correlation studies and historical trend evaluation this study aims to provide a comprehensive understanding of India’s foreign exchange reserves and policy measures for their optimal management.