**Executive Summary**
This press release from the Reserve Bank of India, dated December 01, 2025, details the sources of variation in India's foreign exchange reserves during April-September 2025. It compares these figures with the corresponding period in 2024. The data is based on the balance of payments (BoP) for the second quarter (Q2), i.e., July-September of 2025-26.
**Key Points / Main Content**
* **Balance of Payments Data:**
* The data is based on the balance of payments (BoP) data for Q2 (July-September) of 2025-26.
* **Sources of Variation in Foreign Exchange Reserves (April-September):**
* The current account balance was -US$ 15.1 billion in 2025 compared to -US$ 25.3 billion in 2024.
* The capital account (net) was US$ 8.6 billion in 2025 compared to US$ 49.2 billion in 2024.
* Foreign Direct Investment (FDI) was US$ 7.7 billion in 2025 compared to US$ 3.4 billion in 2024.
* Portfolio Investment was -US$ 4.1 billion in 2025 compared to US$ 20.8 billion in 2024.
* Banking capital was US$ 0.3 billion in 2025 compared to US$ 9.0 billion in 2024.
* Short-term credit was US$ 2.9 billion in 2025 compared to US$ 7.5 billion in 2024.
* External assistance was US$ 1.2 billion in 2025 compared to US$ 3.5 billion in 2024.
* External commercial borrowings were US$ 4.5 billion in 2025 compared to US$ 3.5 billion in 2024.
* Other items in the capital account were -US$ 3.9 billion in 2025 compared to US$ 1.4 billion in 2024.
* The valuation change was US$ 38.2 billion in 2025 compared to US$ 35.5 billion in 2024.
* Total variation (I+II+III) was US$ 31.8 billion in 2025 compared to US$ 59.4 billion in 2024.
* **Increase/Decrease in Reserves:**
* On a balance of payments basis (excluding valuation effects), foreign exchange reserves decreased by US$ 6.4 billion during April-September 2025, compared to an increase of US$ 23.8 billion during April-September 2024.
* In nominal terms (including valuation effects), foreign exchange reserves increased by US$ 31.8 billion during April-September 2025, compared to an increase of US$ 59.4 billion during April-September 2024.
**Impact Analysis**
**Reserve Bank of India**
**Impact:** This press release informs the public about the variations in India's foreign exchange reserves.
**Action Required:** Publishing and disseminating the data.
**Financial Analysts/Economists**
**Impact:** Provides data for analyzing trends in India's balance of payments and foreign exchange reserves.
**Action Required:** Analyze the data to assess economic conditions and make forecasts.
**Businesses and Investors**
**Impact:** Informs decisions related to foreign exchange exposure and investment strategies.
**Action Required:** Consider the data when making investment and financial decisions.
**General Public**
**Impact:** Provides transparency regarding the management of the country's foreign exchange reserves.
**Action Required:** Be aware of the economic factors affecting the nation.
Key Entities Referenced
Reserve Bank of India: Central bank responsible for releasing the balance of payments data and sources of variation in foreign exchange reserves.
Balance of Payments (BoP): Data concerning India's economic transactions with the rest of the world, used to determine the sources of variation in foreign exchange reserves.
Foreign Exchange Reserves: Assets held by the Reserve Bank of India in foreign currencies, gold, and special drawing rights, variations of which are being analyzed.
प्रेस प्रकाशनी PRESS RELEASE
भारतीय ररज़र्व बैंक
RESERVE BANK OF INDIA
वेबसाइट
:
www.rbi.org.in/hindi
संचार वर्भाग, केंद्रीय कायाालय, शहीद भगत ससिंह मागा, फोटा, म िंबई - 400 001
Website : www.rbi.org.in Department of Communication, Central Office, Shahid Bhagat Singh Marg, Fort,
ई-मेल/email : helpdoc@rbi.org.in Mumbai - 400 001 फोन/Phone: 022 - 2266 0502
December 01, 2025
Sources of Variation in India’s Foreign Exchange Reserves
during April-September 2025
Today, the Reserve Bank of India released the balance of payments (BoP) data
for the second quarter (Q2), i.e., July-September of 2025-26, on its website
(www.rbi.org.in). On the basis of these data, the sources of variation in foreign
exchange reserves during April-September 2025 are detailed below in Table 1.
Table 1: Sources of Variation in Foreign Exchange Reserves*
(US$ billion)
April-
April-
Items September
September 2024
2025
I. Current Account Balance -25.3 -15.1
II. Capital Account (net) (a to f) 49.2 8.6
a. Foreign Investment (i+ii) 24.2 3.6
(i) Foreign Direct Investment (FDI) 3.4 7.7
(ii) Portfolio Investment 20.8 -4.1
b. Banking Capital 9.0 0.3
of which: NRI Deposits 10.2 6.1
c. Short-term Credit 7.5 2.9
d. External Assistance 3.5 1.2
e. External Commercial Borrowings 3.5 4.5
f. Other Items in Capital Account 1.4 -3.9
III. Valuation Change 35.5 38.2
IV. Total (I+II+III) @ 59.4 31.8
Increase in reserves (+) / Decrease in
reserves (-)
*: Based on the old format of BoP (BPM5) which may differ from the new format (BPM6) in the
treatment of transfers under the current account and ADRs/ GDRs under portfolio investment.
@: Difference, if any, is due to rounding off.
Note: ‘Other Items in Capital Account’ apart from ‘Errors and Omissions’ includes SDR allocation, leads
and lags in exports/imports, funds held abroad, advances received pending issue of shares under
FDI, capital receipts not included elsewhere, and rupee denominated debt.
On a balance of payments basis (i.e., excluding valuation effects), foreign
exchange reserves decreased by US$ 6.4 billion during April-September 2025 as
against an accretion of US$ 23.8 billion during April-September 2024. Foreign
exchange reserves in nominal terms (i.e., including valuation effects) increased by
US$ 31.8 billion during April-September 2025 as compared with an increase of US$
59.4 billion in April-September 2024 (Table 2).2
Table 2: Comparative Position of Variation in Reserves
(US$ billion)
April-September April-September
I tems 2024 2025
Change in Foreign Exchange Reserves 59.4 31.8
1.
(i.e., Including Valuation Effects)
Valuation Effects 35.5 38.2
2.
[Gain (+)/Loss (-)]
Change in Foreign Exchange Reserves on 23.8 -6.4
3. BoP basis (i.e., Excluding Valuation
Effects)
Notes: 1. Increase in reserves (+)/Decrease in reserves (-).
2. Difference, if any, is due to rounding off.
The valuation gain, primarily reflecting higher price of gold, depreciation of US
dollar against major currencies and lower bond yields, increased to US$ 38.2 billion
during April-September 2025 from US$ 35.5 billion during April-September 2024.
(Brij Raj)
Press Release: 2025-2026/1599 Chief General Manager