In a major development, India has surpassed Russia to become the country with the fourth largest forex reserves in the world at $580.3 billion, reports Times Now.
This come in the backdrop of the government's focus on cutting down imports and increasing exports by giving a boost to domestic manufacturing in the country.
Reserves for India and Russia have plateaued rising for months. India pulled ahead as Russian holdings declined at a faster rate.
According to the Reserve Bank of India, foreign exchange reserves of the country declined by $4.255 billion to $580.299 billion in the week ended 5 March edging out Russia's $580.1 billion pile. Notably, India's forex reserves had touched a record high of $590.185 billion in the week ended 29 January 2021.
The world's largest forex reserves league table is headed by China, followed by Japan and Switzerland.
India's foreign-exchange reserves, which are now sufficient to cover around 18 months of imports, have been boosted by massive inflows by FIIs into the stock market and burgeoning FDI.
According to a recent report by Acuite Ratings, the Indian rupee has strengthened in 2021 so far on healthy portfolio inflows, and sharp downward adjustment in inflation.
"We expect India to post record BoP surplus of $105 billion in FY21, followed by a healthy surplus of $55 billion in FY22.
With IANS Inputs
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