New Delhi, August 8, 2025 – India has witnessed a sharp decline in its foreign exchange (forex) reserves, with the latest weekly data from the Reserve Bank of India showing a fall of $9.322 billion for the week ending August 1.
This marks one of the steepest single-week declines in the nation’s forex reserves in recent years.
According to the central bank’s report, India’s total forex reserves now stand at $688.871 billion, down from the previous week’s $698.193 billion. The breakdown reveals that foreign currency assets dropped by $7.319 billion to $581.607 billion, while gold holdings slipped by $1.706 billion to $83.998 billion. In addition, the country’s Special Drawing Rights (SDRs) with the International Monetary Fund (IMF) fell by $237 million to $18.572 billion, and the reserve position in the IMF decreased by $59 million to $4.694 billion.
The significant decline comes amid global market volatility and heightened trade tensions. Analysts suggest that the fall may be partly linked to recent tariff measures imposed by the United States on certain Indian exports, which have impacted investor sentiment and increased dollar outflows.
Economists warn that such a sharp drop in forex reserves could exert additional pressure on India’s balance of payments, especially if global commodity prices remain unstable. Maintaining healthy reserves is vital for ensuring currency stability, meeting external obligations, and safeguarding against sudden capital flight in uncertain economic conditions.