India’s foreign exchange (forex) market has witnessed remarkable growth over the past four years, with the average daily turnover rising from USD 32 billion in 2020 to USD 60 billion in 2024, according to Reserve Bank of India (RBI) Governor Sanjay Malhotra.
Speaking at the 24th FIMMDA-PDAI Annual Conference in Bali on Friday, Governor Malhotra highlighted the rapid evolution and resilience of India's financial markets.
“Over the past few years, we have witnessed significant developments that have transformed our markets into a dynamic and resilient force… Almost doubling of average daily turnover in the forex market from USD 32 billion in 2020 to USD 60 billion in 2024,” he said.The forex market isn’t the only segment showing notable growth. Malhotra pointed out that the overnight money market also expanded substantially, with average daily volumes increasing by 80%—from ₹3 lakh crore in 2020 to over ₹5.4 lakh crore in 2024.
Similarly, the government securities (g-secs) market experienced a 40% rise in average daily volumes, now reaching ₹66,000 crore.
Emphasizing the critical role of financial markets in India’s economic journey, the Governor said:
“If India is to navigate the shifting tides and fulfil its aspirations, financial markets will have to play a crucial role.”He noted that markets are not just platforms for capital raising and asset trading, but also essential engines for economic growth.
Despite global headwinds, India’s government securities market remained stable throughout the year. Gross market borrowings by both the central and state governments in FY 2024–25 stood at ₹24.7 lakh crore, which were completed smoothly without disruption.
“The government securities market has, however, remained rock-steady throughout the year,” Malhotra affirmed.In his closing remarks, the Governor acknowledged the maturity and advancement of India’s financial infrastructure:
“Motivated to fulfil the nation’s evolving needs and aspirations, and guided by learnings from successive crises, our markets have matured and advanced. Our market infrastructure is state-of-the-art, and the levels of transparency are at par with the best in the world.” (Reported by: ANI)
