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Look How Rich India's Become Under New Prime Minister Modi

The “Modi Magic” continues in India.  Ever since last May’s election of new Prime Minister Narendra Modi, India has been showered with good fortune.

Here’s one way to measure India’s new found flow of money: India’s foreign exchange reserves rose $1.39 billion in the last week of March alone, putting the Reserve Bank of India's (RBI) rainy day fund at $341.37 billion. India is no longer far behind its other BRIC peers. Russia’s Central Bank has $360 billion.  Brazil has $371 billion.

This is the second time in a two week period the reserves have risen as the RBI gets busy buying dollars from the open market to prevent the rupee from strengthening too much. Yes…strengthening. The rupee closed Friday at 62.09 to the dollar. The Indian currency has gained 2% against the dollar this year, which is not easy. Russia’s currency, the ruble, has gained too but that is because it was sent to the slaughterhouse in December when it hit an all-time low of 70 to 1. The rupee has been as stable as the Chinese yuan, actually. Much of that is due to foreign investors buying Indian stocks and bonds.


Indian Prime Minister Narendra Modi gestures as he speaks during the inauguration of a conference on Financial Inclusion in Mumbai on April 2, 2015. The conference was organised on the occasion of completion of 80 years of the Reserve Bank of India (Photo by Punit Paranjpe/AFP/Getty Images)

Everyone is bullish on Modi. That is making the government richer, and in turn making India richer as well.


U.S. businessman Ravin Gandhi, the CEO of household chemical goods company GMM Nonstick Coatings set up  shop in India in 2011. He has a factory in Modi’s home state of Gujarat, one of the most developed and high tech states in the country.