India’s Policy Stance on reserves and the currency

India’s reserves have been growing since the external reforms of 1991-2 and 1992-3. There was a minor interruption after the Asian crises as India borrowed money abroad through the mechanism of the Resurgent India Bonds (RIBs), at a relatively high rate of interest. The pace of reserve accumulation has picked up since then with an addition of $25 billion to reserves in 2002-3.