India’s foreign exchange reserves rose by $2.8 billion to $343.2 billion, creating a new record. RBI has added close to $24 billion in the reserves  since January as overseas investors poured in dollars in local markets with the Narendra Modi government backing investment and clearing stalled projects.

The rise in reserves in the week under review coincided with rating company Moody’s decision to revise India’s ‘Baa3’ rating outlook to ‘positive’ from ‘stable’. Many expect this decision will be followed by a rating upgrade which will allow India companies to mobilise resources from the overseas market at a lower cost.

In the week under review, foreign currency assets rose $2.7 billion to $318.860 billion. Foreign currency assets constitute the bulk of the reserves and reflect the change in the value of reserves held in other global currencies, including the euro, pound and yen due to exchange rate movements. Gold reserves remained static at $19.038 billion.