"Modi Government’s Massive Achievement: India’s Foreign Reserves Hit Rs 52.32 Trillion

New Delhi: While many nations are grappling with various challenges, India is solidifying its economic foundation. On Sunday, Commerce and Industry Minister Piyush Goyal shared encouraging news, revealing that India’s foreign exchange reserves are ample enough to last for a decade. Speaking at an event, Goyal also highlighted that the country’s Current Account Deficit (CAD) stands at just 1% of its GDP.

In his address, Goyal pointed out that Indian workers abroad are contributing significantly to the nation’s economy, sending home USD 130 billion in remittances. “USD 130 billion in remittances is coming to India,” Goyal affirmed, emphasizing the critical role of these transfers from Indians working overseas.

Furthermore, Goyal noted the stories of India’s economic growth, expanding manufacturing sector, rising investments, infrastructure development, and consumption-driven growth. He added that these factors are contributing to India’s position as the world’s fastest-growing economy. “We have strong macroeconomic fundamentals,” he said. “Many look at our foreign exchange reserves—they are the fourth largest globally. Our CAD is barely 1% of GDP. In this context, our reserves can last for 10 years. India’s story is one of stability, continuity, and predictability in an uncertain world.”

What is CAD?

The Current Account Deficit (CAD) measures the difference between a country’s imports and exports. It occurs when a country imports more than it exports. CAD is a crucial indicator of a nation’s economic health—when it is low in relation to GDP, it signals positive economic stability and growth.

India’s Foreign Exchange Reserves

India’s foreign exchange reserves saw a notable increase of USD 7.6 billion by February, bringing the total reserves to USD 638.26 billion. The previous record high of USD 704.88 billion was recorded during the week ending September 27, 2024.