With the economy in the tailspin amid pandemic, the news of India's Forex reserves touching the $500 billion mark for the first time provided the semblance of solace. Examine the factors that could explain this increase.10 Marks

With the economy in the tailspin amid pandemic, the news of India’s Forex reserves touching the $500 billion mark for the first time provided the semblance of solace. Examine the factors that could explain this increase.10 Marks

Mentor’s comment- https://finshots.in/archive/india-foreign-exchange-reserves/ In the intro, mention the importance of adequate Forex for a country. In the body, you can cite factors like declining oil import, foreign investment, change in the RBI’s stance etc. Conclude by mentioning India’s journey from 1991 to now in terms of Forex reserve.