Modi government’s HUGE achievement as India’s foreign reserves touch Rs 52316000000000, secures its economy for next…, GDP to…

Commerce and Industry Minister Piyush Goyal said on Sunday that India's foreign exchange reserves are sufficient to last for 10 years.

New Delhi: While many major countries around the globe are witnessing various challenges, India is strengthening its foundation. Commerce and Industry Minister Piyush Goyal said on Sunday that India’s foreign exchange reserves are sufficient to last for 10 years. The minister, while speaking at an event, also mentioned that the country’s CAD (Current Account Deficit) is only 1 percent of GDP.

Piyush Goyal stated that Indians working abroad are sending back USD 130 billion. Goyal said, “USD 130 billion in remittances is coming to India.” Remittances refer to the money sent by Indians working abroad to their home country.

Goyal further said, “The stories of economic growth, manufacturing, investment, infrastructure, and consumption-based development are making India the world’s fastest-growing economy. We have strong macroeconomic fundamentals. Many people look at our foreign exchange reserves— it is the fourth largest in the world. The CAD (Current Account Deficit) is barely 1% of GDP… In this context, our foreign exchange reserves can last for 10 years. India’s story is one of stability, continuity, and predictability in an uncertain world.”

What is CAD?

The Current Account Deficit (CAD) is a measure through which the trade and financial transactions of a country is being measured. It occurs when a country’s imports exceed its exports. CAD is an important indicator of a nation’s economic health. When CAD is low in proportion to Gross Domestic Product (GDP), it reflects several positive signs. This situation is considered beneficial for the country’s economy.

How much is India’s Foreign Exchange Reserves?

India’s foreign exchange reserves increased by USD 7.6 billion till February. With this rise, the reserves reached USD 638.261 billion. Earlier, during the week ending on September 27, 2024, the foreign exchange reserves had touched a record high of $704.885 billion.