<h1>India's Forex Reserves Surge by $12.2 Billion in 2013-14 Amidst Improved Economic Conditions and Capital Inflows.</h1> The Reserve Bank of India reported an increase in foreign exchange reserves by US$ 12.2 billion during 2013-14, compared to a decline of US$ 2.4 billion the previous year. The current account deficit decreased significantly, while net capital inflows, particularly from non-resident Indian deposits, contributed to the rise. Despite a valuation loss of US$ 3.3 billion due to currency movements and declining gold prices, the reserves grew by US$ 15.5 billion on a balance of payments basis, excluding valuation effects. This reflects improved economic conditions and increased foreign investments.