India’s foreign reserves closer to hit all-time high
Reserves had touched an all-time high of $355.46 billion in the week to June 19
New Delhi/Hyderabad: Despite a volatile global economic environment, India has seen a healthy growth in its foreign reserves and the kitty is closer to touch the all-time high of all time high of $355.459 billion.
According to RBI’s statement, the foreign reserves have risen by $921 million to $355.354 billion in the week to August 21 — this is just $105 million short of the record level. The reserves had touched an all-time high of $355.46 billion in the week to June 19.
Foreign reserves play an important role in defending the country’s currency against the global volatility. In wake of an expected US rate hike, a healthy foreign reserves would help India ward off pressure on the rupee and attract more investors.
Meanwhile, the country’s external debt has increased by 6.6 per cent to $475.8 billion at end-March 2015. The rise in external debt was due to the rise in long-term debt particularly commercial borrowings and NRI deposits.
“Notwithstanding the increasing external debt stock during 2014-15, crucial debt indicators such as external debt-GDP ratio and debt service ratio remained in the comfort zone,” wrote Union finance minister Arun Jaitley in his foreword to the report India’s External Debt.
He said that the external debt of the country continues to be dominated by the long term borrowings. “India continues to be among the less vulnerable countries with its external debt indicators comparing well with other indebted developing countries,” added Mr Jaitley.