India’s foreign exchange reserves stood at $690.7 billion as of the week ended May 1, 2026, according to the latest data from the Reserve Bank of India (RBI). This is down from an all-time high of $728.5
billion hit in late February 2026. The fall comes on costlier crude oil and a weaker rupee amid the West Asia conflict.
In the previous reporting week ended April 24, the overall reserves had declined by $4.82 billion to $698.487 billion.
India’s foreign currency assets: For the week ended May 1, foreign currency assets, a major component of the reserves, decreased by $2.797 billion to $551.825 billion, the central bank’s data showed.
Expressed in dollar terms, the foreign currency assets include effects of appreciation or depreciation of non-US units, such as the euro, pound, and yen, held in the foreign exchange reserves.
Value of gold reserves: Value of gold reserves decreased by $5.021 billion to $115.216 billion during the week ended May 1, the RBI said.
Special drawing rights: The Special Drawing Rights (SDRs) were up $15 million to $18.789 billion, the apex bank said.
India’s reserve position with IMF: India’s reserve position with the IMF was also up by $8 million to $4.863 billion at the end of the reporting week, according to the apex bank’s data.
How India Earns And Spends Foreign Exchange
India earns foreign exchange primarily through exports of goods and services, remittances from Indians working abroad, foreign investments and overseas borrowings.
Among the biggest contributors are software and IT services exports, which bring billions of dollars into the country every year. India also earns significant foreign exchange through exports of petroleum products, pharmaceuticals, engineering goods, chemicals, textiles and agricultural products.
Remittances sent by Indians living overseas are another major source of dollar inflows. India remains one of the world’s top recipients of remittances, with money flowing in from countries such as the United States, the UAE, Saudi Arabia, the United Kingdom and Canada.
India continues to dominate global remittance flows, with inflows touching a record $138 billion in 2024, supported by the world’s largest diaspora of nearly 19 million people. According to the World Migration Report 2026 released by the International Organization for Migration, India remained the only country to cross the $100-billion mark in remittances, highlighting the scale and economic significance of its overseas population.
Foreign institutional investments (FIIs), foreign direct investment (FDI), external commercial borrowings and tourism receipts also help add to the country’s forex reserves.
On the other hand, India spends foreign exchange mainly on imports. Crude oil is the country’s largest import item and accounts for a major share of dollar outflows. India also imports gold, electronic goods, machinery, chemicals, fertilisers and edible oils in large quantities.
Apart from imports, foreign exchange is also spent on overseas travel, education abroad, freight payments, defence purchases and repayment of external debt.
The RBI uses forex reserves to manage volatility in the rupee, meet import requirements and maintain confidence in the country’s external sector. A strong reserve position also acts as a buffer during global economic uncertainty and periods of sharp capital outflows.
