India's forex reserves touch record high at $344.6 billion

MUMBAI: India’s foreign exchange reserves rose $ 1.4 bn in the week ended April 24 to touch $344.6 bn, creating a new record. The Reserve Bank of India (RBI) has added close to $ 25 bn in the reserves kitty since January as overseas investors poured in dollars in the local debt and equities market on the hope of economic revival.

The rise in foreign exchange reserves was mainly on account of a $ 1.4 bn jump in the foreign currency assets which stood at $ 320 bn, said a data released by the RBI. Foreign investors are investing in domestic market on hopes that the economy will revive soon. Recently finance ministry called a high level meeting of senior bankers and bureaucrats to discuss 85 large infrastructure projects while all the financial regulators met to discuss ways to deepen the bond market.

The rise in the reserves also comes in response to the rating agency Moody’s decision to upgrade the outlook for India from stable to positive while it retained the rating to investments grade Baa3. India has set a economic growth target between 8.5% for fiscal year 2015-16 as against an access growth of 7.2% in fiscal year 2-14-15. On Tuesday, World Bank pointed out that the outlook for Indian the economy has improved significantly but pegged the economic growth at 7.9%.