Abstract

Foreign exchange reserves constitute a critical component of a country’s macroeconomic stability serving as a safeguard against external shocks currency volatility and balance of payments crises. India as one of the fastest-growing emerging economies has seen significant fluctuations in its foreign exchange reserves over the past decades due to factors such as trade imbalances capital flows global financial crises and policy interventions by the Reserve Bank of India (RBI). These reserves comprising foreign currencies gold special drawing rights (SDRs) and the IMF reserve position play a vital role in sustaining confidence in the Indian rupee ensuring liquidity for international transactions and supporting monetary policy objectives. The present study aims to analyze the trends composition determinants and policy implications of India’s foreign exchange reserves from a comprehensive perspective. Using historical data econometric models and comparative analysis the paper examines the im