Major Turnaround During Iran-Israel Conflict: India Changes the Entire Game

India’s foreign exchange reserves have seen a significant increase. According to data released by the Reserve Bank of India (RBI), the country’s forex reserves rose by $2.29 billion (approx. ₹20,000 crore) in the week ending June 13.

The previous week was crucial not just for India but for the entire world. The Iran-Israel conflict created uncertainty across global stock markets, leading to fear among foreign investors. India, too, was expected to suffer losses on certain fronts. However, in the midst of this volatile situation, India turned the tables and showed remarkable economic strength with a rise in foreign exchange reserves. This is the second consecutive week of such an increase. In total, $2 billion (around ₹20,000 crore) has been added to the country’s treasury.

India’s foreign exchange reserves have now reached an eight-month high. To break the previous all-time high, India still needs an additional $6 billion. Considering the current momentum of economic growth, experts predict this record might be broken within the next month. Meanwhile, Pakistan’s foreign reserves have seen a modest increase.

Current Status of India’s Foreign Exchange Reserves

India’s forex reserves have increased for the second consecutive week. As per RBI data, in the week ending June 13, the reserves grew by $2.29 billion, taking the total to $698.95 billion. This is the highest level since September 2024, marking the biggest surge in the past eight months.

India’s gold reserves have also increased. There has been a rise of $428 million, taking the gold holdings to $86.32 billion.

What is the Situation in Pakistan?

According to Chinese media outlet Xinhua, on June 13, Pakistan’s central bank saw an increase of $46 million in its forex reserves. As per a statement from the State Bank of Pakistan (SBP), the reserves increased from $11.68 billion to $11.72 billion within a week. As of June 13, Pakistan’s total foreign reserves are close to $17 billion.