India’s Forex Market Turnover Doubles to $60 Billion; Financial Markets Show Robust Growth: RBI Governor
India’s foreign exchange (forex) market has witnessed remarkable growth over the last four years, with average daily turnover nearly doubling from USD 32 billion in 2020 to USD 60 billion in 2024. This significant development was highlighted by RBI Governor Sanjay Malhotra during his address at the 24th FIMMDA-PDAI Annual Conference held in Bali on April 18.
Governor Malhotra attributed this growth to the increasing dynamism and resilience of India’s financial markets. “Over the past few years, we have witnessed significant developments that have transformed our markets into a dynamic and resilient force,” he said. The forex market’s average daily turnover touching $60 billion is a strong indicator of India’s evolving global financial presence.
He also noted that foreign currency assets, a major component of the country’s forex reserves, rose by USD 892 million to reach USD 574.98 billion in the week ending April 11. These assets, expressed in US dollar terms, reflect the impact of exchange rate fluctuations in non-dollar currencies such as the euro, pound, and yen held in India’s reserves.
Beyond the forex market, Malhotra pointed to growth across other segments of the financial ecosystem. The overnight money market has seen an 80% jump in average daily volumes—from approximately ₹3 lakh crore in 2020 to over ₹5.4 lakh crore in 2024. Similarly, the government securities (G-sec) market has recorded a 40% rise in daily trading volumes, reaching ₹66,000 crore during the same period.
He emphasised that India’s financial markets play a crucial role in supporting the country’s broader economic aspirations. “If India is to navigate the shifting tides and fulfil its aspirations, financial markets will have to play a crucial role,” the RBI Governor remarked.
Highlighting the strategic importance of financial markets, Malhotra said they are more than just platforms for capital raising and asset trading. “They are key enablers of economic growth,” he added. Despite various global macroeconomic uncertainties and interest rate volatilities, India’s government securities market remained stable and resilient throughout the fiscal year. He noted that gross market borrowings by both the central and state governments, amounting to ₹24.7 lakh crore for FY 2024-25, were managed smoothly.
In his concluding remarks, Governor Malhotra commended the progress made in strengthening India’s financial market infrastructure. “Motivated to fulfil the nation’s evolving needs and aspirations and guided by learnings from successive crises, our markets have matured and advanced. Our market infrastructure is state-of-the-art. The levels of transparency are at par with the best in the world,” he said.
India’s continued focus on enhancing market transparency, infrastructure, and regulatory oversight has bolstered investor confidence and cemented its position as one of the most promising emerging financial markets globally.
With strategic reforms and growing international interest, India’s financial markets are poised to play an even bigger role in the country’s growth story in the years ahead.
INDIA TV.
