RBI · Macro Data
India's forex reserves gain $22.8 bn in 2025-26 on valuation boost
Valuation gains surged to $46.4 bn, but BoP basis saw a $23.6 bn depletion as current account deficit widened.
What changed
- Current account deficit widened to $25.4 bn from $23.1 bn
- Capital account surplus narrowed sharply to $1.8 bn from $18.0 bn
- Valuation gains more than doubled to $46.4 bn from $26.9 bn
The read
India's foreign exchange reserves rose $22.8 bn in 2025-26, entirely driven by a $46.4 bn valuation gain from a weaker dollar and higher gold prices. On a balance of payments basis, however, reserves fell $23.6 bn—five times the previous year's depletion. The current account deficit widened to $25.4 bn and the capital account surplus collapsed to $1.8 bn, with portfolio outflows of $16.4 bn overwhelming a modest FDI rise. Reserve accumulation remains hostage to valuation effects rather than genuine foreign inflows.
Key numbers
- Current account deficit: $25.4 bn
- Capital account surplus: $1.8 bn
- Valuation gain: $46.4 bn
- BoP basis change: -$23.6 bn
Primary source: rbi.org.in