'Levels often deceptive': 5 reasons why India needs to up record forex pile

The reserve touched a record $608 billion last month due to RBI soaking up dollars.

The rise in India’s foreign exchange reserves to above $600 billion may not be enough to beat the challenges looming for Asia’s third-largest economy, according to some central bankers and economists.

The pile touched a record $608 billion last month, thanks mainly to the Reserve Bank of India soaking up dollars flowing in as foreign direct investments, as well as into the nation’s booming stock market. The hoard may help reassure investors and credit-rating companies about the government’s ability to meet its debt obligations despite a deteriorating fiscal outlook.

But the headline number hides some deficiencies, say analysts, including researchers