A study on foreign exchange reserves in India in the post liberalization ERA

Abstract

Indias economic reform since 1991 has been catalyst in shaping the performance of the economy. No doubt the economy has been brought to a higher growth trajectory, emerged as one of the fastest growing economies in the world and minimized many of the apparent inefficiencies that were persistent before the reform; however, it is overwhelmed by various socio-economic problems. This paper is primarily concerned with an analysis of the growth and trends in the foreign exchange reserves of India. It is based on secondary data and the data reliable for analysis are collected from handbook of statistics on Indian economy and the website of Reserve Bank of India. The study covers the period of 1991 to 2017. The collected data have been used for analysis with the help of compound growth rate. The analysis of the data reveals that foreign exchange reserves have significantly changed over the years. All the indicators noticed notable growth rate during the period under review. From the overall analysis showed that India holds adequate level of foreign exchange reserves.