The Centre has sharply raised import duty on gold, silver and platinum as geopolitical tensions and rising import costs put pressure on India’s external account.
The foreign exchange reserves fell for a third consecutive week as of December 20, data from the Reserve Bank of India said on Friday.
India's forex reserves dropped by USD 3.235 billion to USD 654.857 billion for the week ending December 6.
India joined the ranks of the world's largest foreign exchange reserves, securing the 4th position globally after China, Japan, and Switzerland.
During the week, India's foreign currency assets (FCA), the biggest component of the forex reserves, rose by USD 5.186 billion to USD 551.331 billion, the central bank's weekly statistical data showed.
India's foreign currency assets (FCA), the biggest component of the forex reserves, rose USD 8.349 billion to USD 545.048 billion
India's foreign exchange reserves during the week that ended on October 14 fell to an over two-year low of USD 528.367 billion, a drop of USD 4.5 billion from the previous week.
In the previous week ended August 28, the reserves had surged by USD 3.883 billion to USD 541.431 billion.
The reserves stood at $534.568 billion for the week ended July 31.
Governor Shaktikanta Das said the reserves at $534.6 billion are equivalent to 13.4 months of imports.
