The foreign exchange reserves of India, the world's fourth largest economy, added $673.4 million for the week ended Jan. 27, placing the country's total foreign exchange reserves now at $293.93 billion, latest data from the Reserve Bank of India showed.

Based on RBI's weekly statistical supplement, India's foreign exchange reserves grew by a few percentage points from the $293.257 billion in the previous week, supported by a strong recovery in the Indian equities markets as well as a rebound in the value of the country's national currency, the rupee. The rupee closed at a 3-month high on Friday at 48.68 against the U.S. dollar.

Keen interest of foreign investments into India, seen as one of the 10 fastest growing economies of the next 40 years, correspond to a parallel entry of funds from overseas investors on various business interests and projects likewise added to the favourable weekly increase. Foreign investors have contributed over $2 billion since the start of the year.

Indian markets have been rising steadily on a bull rally since the onset of the new calendar year. The Sensex has jumped 13.91 per cent until Feb 3, while the Nifty likewise rose 15.17 per cent or 701.55 points in just little over a month.

India's foreign currency assets, the biggest component of the forex reserves pool, jumped by $614.1 million to $260.12 billion for the week ended Jan 27, the RBI weekly statistical supplement said. The RBI did not provide any explanation for the change in foreign currency assets.

The RBI data also said India's reserves with the International Monetary Fund grew by $22.5 million to $2.72 billion.

Its value of gold reserves, however, was unchanged at $26.62 billion.

India now ranks as the fourth-largest economy behind the U.S., China and Japan. But it might overtake Japan in terms of gross domestic product, after the March 2011 devastating tsunami and earthquakes that hit Japan catapulted the country into economic oblivion.