Rising Forex Reserves A Morale Booster; Should Be Used Wisely, Says Anand Mahindra

India's foreign exchange reserves are expected to reach the $500 billion mark in the coming weeks, as the flow of foreign funds increases, despite the coronavirus pandemic. Commenting on the rising forex reserves, Mahindra Group Chairman, Anand Mahindra, has now said that this is a morale boost in these uncertain times. Remembering the fact that 30 years ago India had almost run out of foreign exchange, he also said that the country should use this resource wisely to get back on the growth path.

30 yrs ago India had almost run out of forex. Now we have the 3rd largest global reserves. In these uncertain times this news is a morale booster. Let's not forget our country's potential & let's use this resource wisely to get back on the growth path https://t.co/k7UA8s43mO

— anand mahindra (@anandmahindra) June 11, 2020

Quoting an ET Markets story, Anand Mahindra tweeted, "30 years ago India had almost run out of forex. Now we have the 3rd largest global reserves. In these uncertain times, this news is a morale booster. Let's not forget our country's potential & let's use this resource wisely to get back on the growth path" In 1991, India came close to defaulting on foreign debt and was forced to pledge gold reserves to raise money.

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Right now, India has enough Forex reserves to fund 17 months of imports, and it has already the third biggest holder in the world

Currently, India's foreign exchange reserves stand at $493 billion, which is enough to fund 17 months of imports. In fact, our country has already surpassed Russia and South Korea in terms of forex reserves to become the third biggest holder, after China and Japan. India will be able to further consolidate its position once it reached the $500 billion forex reserve mark.

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The piece of positive news comes at the time when the nation's economy has been crippled due to the COVID-19 pandemic, and the resultant lockdown, which suspended almost all business activities in India for over 2 months.