India's forex reserves dropped by USD 14.881 billion to USD 765.901 billion during the week ended September 18, the Reserve Bank of India (RBI) data said on Friday, September 25.  The decline came amid a fall in foreign currency assets. Meanwhile, the value of gold reserves stood at USD 111.292 billion during the week, increasing by USD 68 million. 

In the previous reporting week, forex reserves had fallen by USD 4.924 billion to USD 780.782 billion.

Why India's Forex Decline 

For the week ended September 18, foreign exchange assets, a major component of the Reserve Bank, declined by $14.816 billion to $630.980 billion, the Reserve Bank of India (RBI) said in a statement.

In dollar terms, foreign exchange assets also include the impact of appreciation or depreciation of non-US currencies held in foreign exchange reserves, such as the euro, pound and yen.

Meanwhile, gold reserves rose by $68 million to $111.292 billion during the week, data showed. On the other hand, Special Drawing Rights (SDRs) declined by $106 million to $18.739 billion. India's reserve position with the IMF stood at $4.89 billion.

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FDI Rises 6% 

According to the data of the Department of Industry and Internal Trade Promotion, foreign direct investment (FDI) into India increased by 6 per cent to $19.81 billion in the April-June quarter of the current fiscal year. However, investments from the US declined by more than 76 per cent.

Foreign investment in the same period of 2025-26 was $18.62 billion.

However, compared to last year, it fell by more than 45 per cent to $2.8 billion in May and by about 29 per cent to $4.91 billion in June. According to the data, investments, which were $6.6 billion in April 2025, almost doubled to $12.1 billion by April.

(With Inputs From PTI)