India's foreign exchange reserves rises to record $600 billion

[letsrock]

Lol. India corporate sector are enjoying highest revenues and profits for past one year. You just have to check their quarterly reports. Sensex is at all time for no reason. Consumption decline is temporary. Stop talking nonsense.

Dont babble nonsense. what has indian corporate sector got to do with forex. It is doing well because your modi wrecked the small busineses with demo and gavve them a huge tax discount. And if they dont do well they simple take indian banks money and fly abroad anyway.

Sure. But GOI doesn't issue dollar bonds. They are always issued in rupees in our stock markets. India never went to global markets to raise dollars.

Infact our external debt in dollars is only 51% of total external debt.

"US dollar denominated debt remained the largest component of India’s external debt, with a share of 51.9 per cent at end-December 2020, followed by the Indian rupee (33.1 per cent), yen (5.8 per cent), SDR (4.6 per cent) and the euro (3.6 per cent)."

In terms of dollars, we are only liable for about $280 billion.

When it comes to our forex reserves over $500 billion are denominated in dollars.

So strictly limiting to dollars, India does enjoy surplus dollar reserves.

Most of your reserves are FII's which will be pulled by investors anytime they want.

 

[艹艹艹]

Arms dealers are waiting for orders from India

 

[Maarkhoor]

India's foreign exchange reserves rises to record $600 billion

India's foreign exchange reserves rose to a record $600 billion, although the central bank does not plan to introduce new instruments to manage these inflows.

After a risk-off period in April-May, the prospects for capital flows to India are improving again.

"As of last Friday, the country's forex reserves touched $598.2 billion," RBI governor Shaktikanta Das said in his policy statement. "We are in the striking distance of achieving $600 billion of reserves. Based on our current assessment, we feel that the reserves have already crossed $600 billion."

Analysis of historical data indicates that the last $100 billion has taken exactly a year to be added - the fastest such accumulation in the central bank's history.

Such inflows help in easing external financing constraints, but could lead to financial market and asset price volatility. In the process, there could be "undesirable and unintended fluctuations in liquidity that can vitiate the monetary policy stance," the governor said.

The Reserve Bank has been actively buying and selling dollars in various segments of the market. In FY'21, the central bank bought $68 billion from the spot market alone.

The success of these efforts is reflected in the stability and orderliness in market conditions and in the exchange rate in spite of large global spill-overs," the governor said.

Experts believe India's forex reserve policy is assuming significance in conducting monetary policy.

"As with our monetary policy framework, a considered debate around RBI’s exchange management objectives, tools, interlinkages, and outcomes can help instil all-round clarity, credibility and confidence, without compromising on RBI’s operational flexibility," said Professor Ananth Narayan, associate professor and head of research at SP Jain Institute of Management and Research.

Still dead bodies floating on Ganges........

 

[Goenitz]

the remittance mainly come from offshore companies... it is the black money of politicians, who launder it and the pandemic is the best time for them.

With no data, the spending on COVID relief, is having a huge gap.. corrupt people are buying substandard foreign machines, not building health facilities, making fake bills etc... no accountability will take place or will be late as data is missing.

fun fact.. adani became twice as rich just in last year.. the entire country is facing deficit, market loss and lock down etc... but they got richer.

Adani Surpasses Ambani in Wealth Addition This Year; 2020 Has More for Us - The Policy Times

The Policy Times aims to unfold social, economic, business, policy and practical issues that matter to India and the world especially the youth and women who would require to develop practical understanding about long-term developmental issues.

thepolicytimes.com

Gautam Adani, the chairman of the Adani Group has added $19.1 billion this year to his wealth that surpasses Mukesh Ambani’s wealth addition of $16.4 billion. This comes as a shock in the economic world as it is rare that we see such things in the industry. The pandemic and lockdown have affected the billionaires too!

 

[Smarana Mitra]

Its nothing but decline in dollar value against other currencies. RBI holds a bunch of reserves in different curriencies (USD<, Yen, UKP, gold and maybe even Yuan) and the composition of them is a secret. However value of reserves is always computed in USD. So if british pound, or euro or yuan etc appreciate in dollars then the reserve value appreciates even though no new dollars are coming in.

India gets dollars through remittances and software. THey will remain. But india imports all machinery - with consumption collapse indian businesses will not makiing those investmentsi n near future.

Decline in dollar value has limited impact on India. India has about $40-45 billion of gold reserves and balance in IMF & world bank. Of the remaining forex, India holds about 85% of the foreign currency as dollars. Moreover, USD has depreciated only by 10% against other currencies, which is not too significant. It may have an impact of about $5-8 billion on forex amount considering that India holds only about 5

India does not import most major machineries but makes them inhouse. Its main imports are semiconductors and petroleum. That is getting hit hard by lockdowns.

Sure. But GOI doesn't issue dollar bonds. They are always issued in rupees in our stock markets. India never went to global markets to raise dollars.

Infact our external debt in dollars is only 51% of total external debt.

"US dollar denominated debt remained the largest component of India’s external debt, with a share of 51.9 per cent at end-December 2020, followed by the Indian rupee (33.1 per cent), yen (5.8 per cent), SDR (4.6 per cent) and the euro (3.6 per cent)."

In terms of dollars, we are only liable for about $280 billion.

When it comes to our forex reserves over $500 billion are denominated in dollars.

So strictly limiting to dollars, India does enjoy surplus dollar reserves.

Except for rupee bonds, all other bonds are to be counted in dollars or other forex. So, make the total forex debt at $370 billion. Still, India has over $225 billion in surplus

 

[Protest_again]

Still dead bodies floating on Ganges........

You can cry another river in Pakistan. Your opinion not worth a dime.

 

[Maarkhoor]

You can cry another river in Pakistan. Your opinion not worth a dime.

Lols....Your economy not worth a dime to your poor people.

 

[Protest_again]

Dont babble nonsense. what has indian corporate sector got to do with forex. It is doing well because your modi wrecked the small busineses with demo and gavve them a huge tax discount. And if they dont do well they simple take indian banks money and fly abroad anyway.


Most of your reserves are FII's which will be pulled by investors anytime they want.

This is the level of economic knowledge that comes out of Pakistan. No wonder its economy is in tatters.

PS: Modi came back to power with record mandate after demonitisation. Stick to Pakistan, you have no idea about India. Lol.

 

[Surya 1]

India's foreign exchange reserves rises to record $600 billion

India's foreign exchange reserves rose to a record $600 billion, although the central bank does not plan to introduce new instruments to manage these inflows.

After a risk-off period in April-May, the prospects for capital flows to India are improving again.

"As of last Friday, the country's forex reserves touched $598.2 billion," RBI governor Shaktikanta Das said in his policy statement. "We are in the striking distance of achieving $600 billion of reserves. Based on our current assessment, we feel that the reserves have already crossed $600 billion."

Analysis of historical data indicates that the last $100 billion has taken exactly a year to be added - the fastest such accumulation in the central bank's history.

Such inflows help in easing external financing constraints, but could lead to financial market and asset price volatility. In the process, there could be "undesirable and unintended fluctuations in liquidity that can vitiate the monetary policy stance," the governor said.

The Reserve Bank has been actively buying and selling dollars in various segments of the market. In FY'21, the central bank bought $68 billion from the spot market alone.

The success of these efforts is reflected in the stability and orderliness in market conditions and in the exchange rate in spite of large global spill-overs," the governor said.

Experts believe India's forex reserve policy is assuming significance in conducting monetary policy.

"As with our monetary policy framework, a considered debate around RBI’s exchange management objectives, tools, interlinkages, and outcomes can help instil all-round clarity, credibility and confidence, without compromising on RBI’s operational flexibility," said Professor Ananth Narayan, associate professor and head of research at SP Jain Institute of Management and Research.

Last year, India had a very narrow trade drficite. Financial year 2021-22 is likely to end up with trade surplusbwhich will give a big boost to to India's Foreign Exchange Reserves. Indian diaspora rrmits highest foreign exchange in the world amounting to to over 80 billion US dollar. From now onwords, there will be steep rise in the Foreign Exchange Reserves of India for any foreseeable future.

 

[xyx007]

There is not much to believe from Indians and their media. Hiding their COVID death toll from the public while picturing a shining India. Oh, India! Why do you tolerate such dishonesty in your society? Everything seems fabricated in your country.

India’s GDP set to drop 7.7%, biggest contraction since 1952 - Times of India

India Business News: India’s economy is set for its biggest annual contraction in records going back to 1952 as the rapid spread of coronavirus cases and measures to conta.

timesofindia.indiatimes.com

 

[Protest_again]

There is not much to believe from Indians and their media. Hiding their COVID death toll from the public while picturing a shining India. Oh, India! Why do you tolerate such dishonesty in your society? Everything seems fabricated in your country.

India’s GDP set to drop 7.7%, biggest contraction since 1952 - Times of India

India Business News: India’s economy is set for its biggest annual contraction in records going back to 1952 as the rapid spread of coronavirus cases and measures to conta.

timesofindia.indiatimes.com

How dumb can you be? India's GDP contracted 7.3% for the year 2020-21, that ended in march. Yet India had fantastic run in the last eight months of that year.

You should at least get common economic sense before you open your mouth. India will grow by over 10% this year just wait and watch.

PS: India exported over $32 billion in goods and $17 billion in services in May. That's put together twice what you export in a whole year in Pakistan. You should worry about Pakistan.

 

[N.Siddiqui]

India does not import most major machineries but makes them inhouse. Its main imports are semiconductors and petroleum. That is getting hit hard by lockdowns.

India do imports huge amount if machinery, apart from machinery including computers...and many a made in India products for example Android smart phones also have lots of imported items, that made in India is actually made by China...




The following product groups represent the highest dollar value in India’s import purchases during 2020. Also shown is the percentage share each product category represents in terms of overall imports into India.

1. Mineral fuels including oil: US$104.4 billion (28.4% of total imports)
2. Electrical machinery, equipment: $42.9 billion (11.7%)
3. Gems, precious metals: $41 billion (11.2%)
4. Machinery including computers: $35.2 billion (9.6%)
5. Organic chemicals: $18.2 billion (4.9%)
6. Plastics, plastic articles: $12 billion (3.3%)
7. Animal/vegetable fats, oils, waxes: $10.6 billion (2.9%)
8. Optical, technical, medical apparatus: $8.2 billion (2.2%)
9. Iron, steel: $7.6 billion (2.1%)
10. Fertilizers: $7.2 billion (2%)

 

[xyx007]

How dumb can you be? India's GDP contracted 7.3% for the year 2020-21, that ended in march. Yet India had fantastic run in the last eight months of that year.

You should at least get common economic sense before you open your mouth. India will grow by over 10% this year just wait and watch.

PS: India exported over $32 billion in goods and $17 billion in services in May. That's put together twice what you export in a whole year in Pakistan. You should worry about Pakistan.

Our economy has nothing to do with you, but in your perspective, it appears bad. Having such a powerful foreign reserve and shining India again wouldn't have required you to bury the bodies beside a river?

Covid-19: India's holiest river is swollen with bodies

Hundreds of corpses have been found floating in the Ganges or buried in the sand of its banks.

www.bbc.com

Any country's balance of payments is very dependent on its exports. Besides goods, services can also be exported. Increasing export earnings help India's current account of the balance of payments. However, India's imports are greater than its exports. Export of services is greater than the export of goods in India. India is still in current account deficit.

There may be reasons for more imports and fewer exports.

1. The policy failure resulted in the closure of the economy and the spread of a self-sustaining mentality after independence. A very small amount of trade was conducted with other countries. Because India was mainly an agricultural economy and the manufacturing sector was not developed much, it did not export much. In early Indian history, the leadership was more socialist than capitalist, so rapid development of the manufacturing sector was not there. At the same time, the purchasing power of the populace was low so it was difficult to sustain an industry, and therefore, it could not think of exports. The lack of competition also made it impossible for quality and technological advancement to occur.
2. LPG reforms - India signed trade agreements with other countries and opened its market for foreign competition. Besides reducing tariffs on imports, it also requested that other countries reduce their own tariffs. India became a member of WTO. However, its poor manufacturing base prevents it from embracing globalization. However, it led to a boom in the service sector. India became a global power in IT after that.
3. The MSME sector in India accounts for 40% of exports, but the conditions and facilities provided to them are extremely poor.

The MSMe sector faces the following problems:

Lack of institutional credit system.

Restrictive labour laws.

Tax burden is very high.

Technological backwardness.

Lack of skills.

Administrative guidance is lacking.

4. Poor infrastructure - facilities such as roads, water, electricity, etc. are lacking in many areas.

5. India has poor logistics facilities - road, rail, water, and air connectivity. Transport costs increase, therefore final product prices increase.

6. Old regulatory laws - regulations are very strict, and due to old labour laws, chances of corruption are always present, which increases the cost of production.

7. Lack of incubation centers - There is a lack of incubation centers providing training and guidance in export.

8. In terms of sanitary and phytosanitary measures, developed countries impose many restrictions on Indian products. An example is the EU banning Alfonso mangos.




As India is one of the most populous nations in the world, there will be a high demand for goods. In spite of being food self-sufficient, India still requires certain commodities, such as edible oil. In addition to producing it, India imports it as well. The same holds true for pulses.

With rising income levels and globalization, the demand for materialistic goods is increasing. Most of these things are produced abroad, so India has to import them. Due to its poor manufacturing base, India has to import a large portion of its imports, such as medicines, arms, and ammunition. India has not been able to create its own brand like Made in India.

 

[My-Analogous]

India's foreign exchange reserves rises to record $600 billion

India's foreign exchange reserves rose to a record $600 billion, although the central bank does not plan to introduce new instruments to manage these inflows.

After a risk-off period in April-May, the prospects for capital flows to India are improving again.

"As of last Friday, the country's forex reserves touched $598.2 billion," RBI governor Shaktikanta Das said in his policy statement. "We are in the striking distance of achieving $600 billion of reserves. Based on our current assessment, we feel that the reserves have already crossed $600 billion."

Analysis of historical data indicates that the last $100 billion has taken exactly a year to be added - the fastest such accumulation in the central bank's history.

Such inflows help in easing external financing constraints, but could lead to financial market and asset price volatility. In the process, there could be "undesirable and unintended fluctuations in liquidity that can vitiate the monetary policy stance," the governor said.

The Reserve Bank has been actively buying and selling dollars in various segments of the market. In FY'21, the central bank bought $68 billion from the spot market alone.

The success of these efforts is reflected in the stability and orderliness in market conditions and in the exchange rate in spite of large global spill-overs," the governor said.

Experts believe India's forex reserve policy is assuming significance in conducting monetary policy.

"As with our monetary policy framework, a considered debate around RBI’s exchange management objectives, tools, interlinkages, and outcomes can help instil all-round clarity, credibility and confidence, without compromising on RBI’s operational flexibility," said Professor Ananth Narayan, associate professor and head of research at SP Jain Institute of Management and Research.

You guys are insane. People in India dying and you guys are celebrating about money. Spend money and save lives

 

[Protest_again]

Our economy has nothing to do with you, but in your perspective, it appears bad. Having such a powerful foreign reserve and shining India again wouldn't have required you to bury the bodies beside a river?

Covid-19: India's holiest river is swollen with bodies

Hundreds of corpses have been found floating in the Ganges or buried in the sand of its banks.

www.bbc.com

Lol. Had corona hit Pakistan the way it hit India, you wouldn't have space to bury. You are lucky no body wanted to visit Pakistan from around the world.

You guys are insane. People in India dying and you guys are celebrating about money. Spend money and save lives

What celebrating? I posted a news. Why do you only want to see negative news from India? Learn to deal with reality.