Covid-19 notwithstanding, the fundamentals of the Indian economy seem strong, and this could be seen by the fact that the country now possesses the largest forex reserves in the world. According to RBI data released on March 5, though India’s foreign currency holdings fell by $4.3 billion to $580.3 billion it edged out Russia at $580.1 billion. Currently, China has the largest reserves, followed by Japan and Switzerland on the International Monetary Fund table.
Union Minister of State for Finance & Corporate Affairs Anurag Thakur believes that the news sets the ground for what he called a “V-shaped recovery.” A V-shaped recovery is encouraging news as it means that a country’s economy which suffers a short period of decline, is on the rise again. This seems to be the case. After two quarters of decline, government data showed the nation’s GDP has entered into positive territory with growth of 0.4%. Pointing to this the minister said, “These are signs of confidence that the global funds and investors look at India as a destination to invest and they are bullish about India’s growth story.”