Foreign Exchange Reserves

As on December 17, 2010, India's foreign exchange reserves totaled US$ 294.60 billion, an increase of US$ 11.13 billion over the same period last year, according to the Reserve Bank of India. The sizeable forex reserves have been instrumental in enabling a substantially market-based exchange rate for the Indian Rupee, within overall limits set by the Reserve Bank. This has led to stability in the import and export flows and macroeconomic stability on the external sector, both during the global crisis and subsequently. However, India remains a net importer, with heavy dependence on crude oil and energy fuels, which account for more than 30% of India's imports.