Q. India’s foreign exchange reserves :
a) Increased to around USD 640 billion as of the end of December 2024
b) Are seventh largest in the world
c) Decreased caused by a BoP deficit of around USD 24 billion in 2024
d) More than one of the above
Correct Answer : a) Increased to around USD 640 billion as of the end of December 2024
Question from BPSC PT 71, 2025
Correct Answer: a)
Explanation:
– Statement (a) is correct: RBI’s weekly data show India’s foreign exchange reserves hovered in the mid-$630s to mid-$650s billion range for much of late 2024; by end-December 2024 they were roughly around $640 billion, i.e., near that level.
– Statement (b) is incorrect: India is typically among the top 4–5 countries globally by forex reserves (after China, Japan, Switzerland, and often Taiwan/Russia), not seventh.
– Statement (c) is incorrect: 2024 did not see an overall BoP deficit of about $24 billion; in fact, India recorded net accretion to reserves over the year amid capital inflows, not a reserve decline due to a BoP deficit.
Therefore, only (a) is correct.
