The Reserve Bank of India (RBI) aims to bolster its forex reserves to create larger buffers, leveraging strong inflows into the equity and debt markets. With reserves hitting a record high of $642.49 billion by March 15, the RBI seeks to insulate the economy from global currency fluctuations. Despite adequate reserves by several metrics, the RBI plans to opportunistically increase reserves on favorable buying opportunities. The buildup is expected to restrain sharp rupee appreciation and align with India’s expanding economy, projected to reach $7 trillion by the decade’s end.