Dikhyaa Mohanty 
Industry analysts said on Saturday that India has demonstrated incredible resiliency in the face of global concerns by maintaining a high growth trajectory thanks to cautious policy measures and a watchful monetary policy attitude. According to the most recent RBI figures, the foreign exchange reserves increased by $5.16 billion during the week ending July 5 to hit a lifetime high of $657.16 billion.
“This would accelerate India’s economic growth to new highs, bolstering its global stature. This increase in Forex reserves will boost India’s worldwide attractiveness, supporting domestic trade and industry,” said Shri Sanjeev Agrawal, President, the PHD Chamber of Commerce and Industry (PHDCCI).
Experts noted that given India’s significant foreign exchange reserves, the central bank will have more leeway in deciding how to handle the nation’s currency and monetary policy in the face of geopolitical unrest and global macroeconomic headwinds. According to Amit Goel, Pace 360’s co-founder and chief global strategist, the central bank has utilised its reserves to control currency volatility.
“The rupee is among the best-performing Asian currencies so far this year. The monetary authority will continue to build reserves ‘opportunistically’ as they help prevent volatility in the market,” said Goel.
To stop the rupee from plunging into free collapse, the RBI can interfere in the spot and forward currency markets by releasing more dollars when the forex kitty is strong. Governor of the Reserve Bank of India Shaktikanta Das has stated that the country’s external sector is still robust and that the central bank is generally confident in its ability to meet the nation’s needs for external finance.
