On one hand, due to Corona, the economies of most countries were shaken. Many countries went into losses. And at the same time, the Modi government took several steps to keep the country’s economy better on the basis of its policies. The results of which have started showing. In fact, India has become the world’s fourth-largest foreign exchange reserve ie forex reserve, after beating Russia.
According to the Bloomberg report
- As of March 5, India’s foreign exchange reserves reached $ 580.3 billion.
- At the same time, Russia’s reserves have come to $ 580.1 billion.
- However, the Indian foreign exchange reserves have also fallen by $ 4.3 billion.
India’s neighbour China is at the forefront of this list. China has the largest foreign exchange reserves in the world.
- China’s foreign exchange reserves are $ 3,336 billion
- That Japan has $ 1,379 billion
- And Switzerland has $ 1,080 billion in foreign exchange reserves.
Let us tell you that foreign debt is kept in a way to repay foreign debt in an emergency. Through this, investors and companies get the confidence that the government can repay its debt in any situation. In foreign exchange reserves
- foreign currency
- Gold reserve
- Treasury bill
- Bond and
- Government bonds are included
64 per cent of the country’s foreign exchange reserves are in the form of treasury bills abroad. According to the data of RBI right now
- 28 per cent foreign exchange reserves with the central bank of other countries
- And 7.4 per cent are kept in the commercial bank.
In view of self-reliant India, the government is emphasizing on reducing imports and increasing exports. Due to this, the government has started the production linked incentive ie the PLI scheme. This scheme is expected to increase the foreign exchange reserves further. This will reduce India’s import expenses and will help in increasing