India’s Record $73B Forex Inflow in Under 11 Weeks
By ThePip Desk
India achieves a historic $73 billion in foreign exchange inflows in under 11 weeks, driven by strong NRI deposits and institutional funding, bolstering reserves.
India has successfully mobilised $73 billion in foreign exchange inflows in less than 11 weeks, marking a global record for scale and pace. This significant achievement, confirmed by the finance ministry, substantially surpasses the Reserve Bank of India’s (RBI) 2013 FCNR(B) swap scheme.
Understanding India’s Forex Mobilisation
The government’s strategy focused on attracting substantial, long-term non-resident deposits and commercial institutional funding. This approach aims to fortify India’s external financial reserves while maintaining high cost-efficiency.
- Total Inflows: $73 billion
- Mobilisation Period: Under 11 weeks
- Contribution from FCNR(B) deposits: $65.40 billion
A significant portion of these inflows, specifically $65.40 billion, originated from FCNR(B) deposits. This highlights the robust participation of Non-Resident Indians in the ongoing scheme.
Outperforming Previous Efforts
The current mobilisation effort has far exceeded the scale of the RBI’s 2013 FCNR(B) swap scheme. That earlier initiative had gathered approximately $26 billion over a three-month period.
- Current Scheme Inflows: $73 billion
- 2013 FCNR(B) Swap Scheme: Approximately $26 billion
- Time taken (2013 scheme): Over three months
With just one week remaining for the current scheme, it is on track to further cement its position as the largest and fastest foreign-currency mobilisation exercise globally.