The country's foreign exchange reserves rose by $1.61 billion on the back of a sharp increase in the value of gold reserves.
In the week ended September 2, the forex reserves stood at $320.785 billion, according to the Reserve Bank of India's Weekly Statistical Supplement . In the previous week ended August 26, the reserves rose by $955 million
The foreign exchange reserves have risen for the third consecutive week.
A break-up of the forex reserves shows that appreciation in the price of gold resulted in the value of gold reserves surging by $2.97 billion. However, the foreign currency assets declined by $1.32 billion.
Foreign currency assets expressed in US dollar terms include the effect of appreciation/depreciation of non-US currencies such as euro, sterling and yen held in reserves.
The euro sank to its lowest in nearly six months against the dollar on Friday, with more falls likely after the European Central Bank dropped its tightening bias and forecast lower growth in the debt-plagued euro zone.
The rupee completed its biggest weekly decline in 15 months, due to a steep fall in local stocks amid a firm dollar overseas.
SDRs declined by $24 million to $4.616 billion. India's reserve position in the IMF declined by $16 million to $2.975 billion.