New Delhi, March 23: India’s foreign exchange reserves increased by $3.6 billion to $405.64 billion as on March 15, data from the Reserve Bank of India (RBI) showed. In the previous week, the reserves had increased by $258.8 million to $401.776 billion.
Foreign currency assets (FCA), which form a key component of reserves, rose by $3.54 billion to $377.773 billion.
FCAs are maintained in major currencies like US dollar, euro, pound sterling and Japanese yen. Movement in the FCA occurs mainly on account of purchase or sale of foreign exchange by the RBI, income arising out of the deployment of foreign exchange reserves, external aid receipts of the government and revaluation of assets.
The increase in foreign reserves could partly be attributed to rising investments by foreign investors in the Indian capital markets. The net foreign portfolio investment (FPI) in equity markets in March (till March 15) at $2.9 billion is highest in since January 2018. Indian debt markets have seen a positive inflow of $1.2 billion till March 15.
As per RBI data, foreign direct investments (FDI) for FY18 amounted to $37.366 billion.