The country's foreign exchange reserves stood at $309.7 billion as at end-March 2008, up $110.5 billion over end-March 2007, making it the third largest stock of reserves among emerging market economies.

"The increase in reserves was mainly due to an increase in foreign currency assets from USD 191.9 billion at end-March 2007 to USD 299.2 billion at end-March 2008," the Reserve Bank said in its Macroeconomic and Monetary Developments document released in Mumbai on Monday.

As on April 18, the country's foreign exchange reserves were at $313.5 billion.

"The overall approach to the management of India's foreign exchange reserves in recent years reflects the changing composition of the balance of payments and the liquidity risks associated with different types of flows and other requirements," the RBI said.

Taking these factors into account, India's forex reserves continued to be at a comfortable level and consistent with the rate of growth, the share of external sector in the economy and the size of risk-adjusted capital flows, it said.