How should india use its huge forex reserves in an effecient manner? -

faster chainsaws? electric powered trucks to hall logs off in? No seriously, if the world can agree an a carbon trading scheme, India as a whole would be far better to keep its forrests and sell the carbon savings to companies wishing to reduce emissions. relatively, their reserves aren t that big. eventually, they might decide to set up a sovereign wealth fund to get better returns, but they are not there yet. It probably would not be wise to use up those reserves. The oil producing nations do not accept Rupees. It might look like a huge some of money but no one knows where the price of oil is going and all of the progress made in India over the past 20 years depends on oil. Oil needs to be purchased in one of the 3 major currencies. Also, India has diversified their reserves already as well as converting some into gold as a hedge.