[Many of you who read the Economist (highly biased and skewed content but popular nevertheless) may have noticed their daily chart feature. I wanted to put together something similar for DFI. Data will pertain to Indian interests. I hope to do this on a daily basis barring weekends. Charts will be posted in the relevant sub-forums] Today's Chart looks at our trend of Forex reserves. India saw a surge in Forex growth in the calendar year 07 upto mid 08. Then the financial crisis and a lot of other events resulted in the Forex reserves hitting a brick wall. In mid-2008, we had a Forex to Nominal GDP ratio of 26%. Today we are languishing at 16%. The chart shows the trend of Forex Reserves, split by the principal components of currency and Gold (I have not included line charts for Special Drawing rights and IMF reserve positions) Now here are some interesting considerations. Yes, there has been no significant FDI or FII inflow from a net perspective since Lehman went down. This is what the RBI cites when explaining Forex. However, what is never discussed is the $50 billion a year in overseas deposits which literally dwarf the FDI/FII component. Is it financial mismanagement or weak policy measures that is resulting in this stagnation of Forex Reserves. To put things in perspective, our Forex reserves wont last us 6 months of balance of payments if there is a financial catastrophe considering our cumulative public and private debt is 70% of our GDP. Anything less than 30% in the ratio of GDP to Forex reserves is weak, in my opinion.