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These belongings, expressed in greenback phrases, embody the influence of modifications within the worth of different main currencies such because the euro, pound, and yen held within the reserves. Gold reserves additionally contributed to the expansion, rising by $1.2 billion to $85.7 billion.
The particular drawing rights (SDRs) with the Worldwide Financial Fund (IMF) rose by $126 million to $18.8 billion, whereas India’s reserve place with the IMF improved by $55 million to $4.75 billion throughout the week.
The RBI intervenes within the overseas trade market every so often to handle liquidity and curb extreme volatility within the rupee’s trade charge. Such interventions are aimed toward sustaining orderly market circumstances relatively than concentrating on a selected trade charge degree.
In the meantime, in accordance with RBI month-to-month bulletin launched late final month, gross overseas direct funding (FDI) into India rose sharply to $8.8 billion in April this yr, in comparison with $5.9 billion in March and $7.2 billion in April 2024.
Almost half of those FDI inflows got here from the manufacturing and enterprise companies sectors. The bulletin additionally stated that India ranked sixteenth on this planet for FDI inflows and attracted $114 billion in greenfield investments within the digital financial system between 2020 and 2024 — the best amongst all international locations within the International South.
Overseas portfolio funding (FPI) additionally noticed sturdy inflows, with internet investments of $1.7 billion in Might 2025, led by the fairness market. This was the third straight month of positive factors for equities, supported by constructive international and home developments such because the India-Pakistan ceasefire, the US-China commerce truce, and better-than-expected company earnings for the fourth quarter of 2024–25, which boosted investor confidence and led to portfolio shifts in direction of Indian belongings.
