RBI’s Sanjay Malhotra highlights rapid growth and resilience in forex, money, and bond markets at FIMMDA-PDAI Conference in Bali
New Delhi, April 19: India’s foreign exchange (forex) market has seen a dramatic surge in activity over the last four years, with average daily turnover nearly doubling—from USD 32 billion in 2020 to USD 60 billion in 2024, Reserve Bank of India (RBI) Governor Sanjay Malhotra announced during the 24th FIMMDA-PDAI Annual Conference held in Bali on Friday.
Describing the transformation, Malhotra said,
“Over the past few years, we have witnessed significant developments that have transformed our markets into a dynamic and resilient force.”
But the forex market isn’t alone in its growth trajectory. The overnight money market also saw a robust 80% rise in average daily volumes, climbing from Rs 3 lakh crore in 2020 to over Rs 5.4 lakh crore in 2024. Additionally, the government securities (g-secs) market registered a 40% increase in average daily turnover, now touching Rs 66,000 crore.
Malhotra emphasized that these advancements reflect India’s increasing market maturity and resilience, even amidst global economic uncertainties.
“If India is to navigate the shifting tides and fulfil its aspirations, financial markets will have to play a crucial role,” he stated, underlining the strategic importance of capital markets in supporting long-term economic growth.
Despite macroeconomic headwinds, Malhotra noted that India’s government securities market remained “rock-steady” through FY 2024–25. He said gross market borrowings by the central and state governments, totalling Rs 24.7 lakh crore, were executed smoothly, highlighting the strength and efficiency of India’s debt markets.
Concluding his remarks, the RBI Governor praised India’s financial market infrastructure, asserting that it is now on par with global benchmarks.
“Motivated to fulfil the nation’s evolving needs and guided by learnings from successive crises, our markets have matured and advanced. The levels of transparency are at par with the best in the world,” he affirmed.
The developments signal a continued evolution of India’s financial ecosystem, with promising implications for investment flows, capital access, and macroeconomic stability.