How India’s Forex Reserves Crossed Half Trillion Dollars For The First Time
The country's foreign exchange reserves have reached over $500 billion for the very first time. Foreign currency reserves crossed the $ 501.7 billion mark on June 5, with an increase of $8 billion in a week.
The biggest reason behind this being stalled economic activity in the lockdown, decrease in fuel consumption and the government did not have to pay the oil companies in foreign currency. Last year, Indians sent out $18,750 million. After the coronavirus pandemic, there has been a huge decline.
According to the RBI data, in April this year, there has been a decline of 61% in the case of sending money out. In April 2019, Indians sent $ 1287.91 million abroad which came down to $ 499.14 million in April 2020.
(Source - RBI)
The maximum decline of 71.81% was seen in expenses related to travelling abroad. In April last year, Indians spent US $ 429.75 million on international tourism which decreased to US $ 121.13 million in April 2020. Statistics show that about two million Indians go abroad every month.
The second-largest decline was in the case of children studying abroad at 68.85%. In April last year, $ 252.84 million was sent to children, which decreased to $ 78.76 million in April 2020. In the year 2018, seven lakh Indian students were studying abroad.
Every year Indians send money to relatives living abroad, which has fallen by 50%. In April last year, $ 296.14 million was sent to relatives, which came down to $ 148.25 million in April this year.
Every year, people used to send gifts to their loved ones, in which a decline of 66% has been recorded. Similarly, a 45.85% decline has been registered in cases of people going abroad for treatment. \
These are a few of the reasons why the country's foreign exchange reserves have reached a record high of $500 billion.