India's foreign exchange reserves on September 18, 2026
India's forex reserves reached US$ 765.9 billion
India's foreign exchange reserves reached US$ 765.9 billion on September 18, 2026. That's enough to cover 11.2 months of goods imports and more than 100% of the country's external debt.
And this jump came despite crude oil prices above US$ 100 a barrel and the rupee falling to ₹95.80 per dollar!
A big reason was an RBI scheme launched on June 8. Banks could bring in dollars through FCNR(B) deposits from NRIs and swap them for rupees. By August 31, banks had raised US$ 133 billion through the window.
NRI deposits also surged. Inflows into all non-resident deposit schemes reached US$ 33.5 billion in July, compared with just US$ 1.0 billion a year earlier.
FDI also picked up. Net FDI reached US$ 7.3 billion in July, the highest in 5 years. For April to July, net FDI stood at US$ 13.4 billion, up from US$ 9.7 billion a year earlier.
Indian companies also borrowed more from overseas. ECB registrations reached US$ 22.3 billion in April-July, up from US$ 12.5 billion last year. About 31% was meant for capex.
Exports had a strong August too. Merchandise exports rose 26.1%, their fastest growth since June 2022. Electronics exports jumped 89.8%, petroleum products 63.3% and engineering goods 24.9%.
The trade deficit also narrowed to US$ 26.9 billion from US$ 32.0 billion in July, helped by a 57.7% fall in gold imports after an import duty was imposed.
The current account deficit remained under control at US$ 4.2 billion, or 0.5% of GDP, in Q1 2026-27.
Not everything moved in the same direction. Foreign portfolio investors pulled out US$ 4.9 billion in 2026-27 up to September 21, driven by equities.
At the same time, GDP grew 7.8% in Q1 2026-27, with fixed investment growing at its fastest pace under the new national accounts series.
Long-term capital inflows grew to US$ 21.4 billion
Net FDI and ECB inflows to India, April to July in each year. Combined inflows grew 33% from US$ 16.1 billion to US$ 21.4 billion.
US$ BILLION
Net FDINet ECBs
FCNR(B) deposits (US$ 133 billion mobilised June 8 to August 31, 2026) and FPI flows are excluded as they cover different periods. ECBs are external commercial borrowings.
RBI Bulletin, September 2026, "State of the Economy" · Apr-Jul 2025 and Apr-Jul 2026
Non-resident deposit inflows jumped 33 times in a year
Net inflows under non-resident deposits in July of each year. The RBI's FCNR(B) swap window, opened on June 8, drove the surge.
US$ BILLION, NET INFLOWS
RBI swap window opened June 8
RBI Bulletin, September 2026, "State of the Economy" · July 2025 and July 2026
Electronic goods exports grew 89.8% in August 2026
Export growth by category in August 2026, compared with a year earlier. Electronics grew at more than 3 times the overall merchandise rate of 26.1%.
% GROWTH, YEAR-ON-YEAR
Fastest overall rate since June 2022
RBI Bulletin, September 2026, "State of the Economy" · August 2026