Prime Minister Narendra Modi announced on Saturday that India’s foreign exchange reserves have surged to a record high, while S&P Global Ratings has upgraded the country’s long-term sovereign credit rating for the first time in nearly two decades. Addressing The Economic Times World Leader Forum in New Delhi, PM Modi said, “We have missed several buses, but now India has decided we would not only miss any bus but also take the driving seat.”

As of August 15, 2025, India’s forex reserves stood at $695.10 billion, marking one of the highest levels in the country’s history and reinforcing its financial resilience amid global economic uncertainties. According to the Reserve Bank of India (RBI), reserves increased by $1.48 billion over the previous week, driven mainly by gains in foreign currency assets. This followed a $4.75 billion jump in the preceding week, reflecting sustained capital inflows and strategic reserve management.

Foreign currency assets, the largest component of reserves, rose by $1.92 billion to $585.90 billion, while gold reserves slightly declined by $2.16 billion to $86.16 billion. Special Drawing Rights (SDRs) with the IMF increased by $41 million, and India’s reserve position with the IMF rose by $15 million to $4.754 billion. RBI Governor Sanjay Malhotra stated that the current reserves are sufficient to cover 11 months of imports, highlighting India’s external sector stability.

The cumulative forex increase in 2025 has been $53 billion, following $20 billion in 2024 and $58 billion in 2023, signaling a strong turnaround from the $71 billion decline in 2022. This robust reserve position provides a strategic cushion to manage currency volatility and maintain investor confidence.

In a parallel development, S&P upgraded India’s long-term rating from ‘BBB-’ to ‘BBB’ with a stable outlook, marking the first rating boost in almost twenty years. India’s short-term rating was also revised from ‘A-3’ to ‘A-2’, and the transfer and convertibility assessment was raised to ‘A-’ from ‘BBB+’. The agency cited India’s robust economic fundamentals, sustained fiscal consolidation, improved policy predictability, and projected GDP growth of 6.8% annually over the next three years as key reasons behind the upgrade.

These developments not only enhance investor confidence but could also reduce borrowing costs for the government and Indian corporations, reinforcing India’s growing stature in the global financial landscape.