India’s Forex Market Doubles in Four Years: RBI Governor Hails Market Transformation

In a major endorsement of India’s evolving financial ecosystem, Reserve Bank of India (RBI) Governor Sanjay Malhotra highlighted the robust expansion of the country’s foreign exchange market, with average daily turnover nearly doubling from USD 32 billion in 2020 to USD 60 billion in 2024.

Speaking at the 24th FIMMDA-PDAI Annual Conference held in Bali on Friday, Governor Malhotra described India’s financial markets as increasingly "dynamic and resilient", citing transformative growth across various segments.

“The almost doubling of average daily turnover in the forex market from USD 32 billion in 2020 to USD 60 billion in 2024 reflects the strength and adaptability of our financial system,” said the Governor. He emphasized that this growth is part of a larger financial market evolution critical to India's economic ambitions.

It’s not just the forex market witnessing a boom. The overnight money market, too, has seen a dramatic 80% jump in activity, with daily volumes soaring from ₹3 lakh crore in 2020 to over ₹5.4 lakh crore in 2024. Similarly, the government securities (g-secs) market registered a 40% rise in daily trading volumes, now averaging ₹66,000 crore.

“Financial markets are more than just platforms for raising capital or trading assets. They are essential pillars supporting India’s journey toward becoming an economic powerhouse,” Malhotra noted, reinforcing the sector’s role as a catalyst for progress.

Amid global volatility, India's g-secs market remained stable. “The government securities market has, however, remained rock-steady throughout the year,” Malhotra asserted. In FY 2024-25, gross market borrowings by central and state governments stood at ₹24.7 lakh crore—completed smoothly without disruptions.

Concluding his address, Governor Malhotra praised the advancements made in market infrastructure and governance: “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. The levels of transparency are at par with the best in the world.”

Also Read: India’s Forex Reserves Climb to $677.84 Billion, Sixth Weekly Gain: RBI