The document discusses India's foreign exchange reserves, including how they are defined, managed by the Reserve Bank of India, and their importance. It outlines objectives of maintaining confidence, limiting external vulnerability, and providing stability. It traces the evolution of reserve management policy in India from the 1991 balance of payments crisis to current policies, which aim to ensure safety, liquidity, and protection from external shocks through deployment in US government papers. New strategies proposed include creating sovereign wealth funds or using reserves for infrastructure and technology investments.