Foreign exchange reserves and its components in India: A comprehensive analysis

Dhubireddi, Appala Naidu and Yadav, Rohit (2025) Foreign exchange reserves and its components in India: A comprehensive analysis. International Journal of Science and Research Archive, 14 (1). pp. 1129-1138. ISSN 2582-8185

The aim of this research paper is to analyse the impact of various components of foreign exchange reserves on foreign exchange reserves of 2023-24. Moreover, various statistical methods have been used to draw comparison and relationship between forex reserves and its components which are, correlation and regression analysis. This paper provides a robust understanding about the accumulation of forex reserves and composition of its various components ie., foreign currency assets, Gold, SDRs and Reserve Tranche Position in IMF. The major finding is that fall in the forex reserves in this financial year of 2023-24 due to valuation changes arising from appreciating U.S. dollar which was due to a major change in a component of forex reserves, foreign currency assets (FCA).