What constitutes India's forex reserves and why are they declining?

India's foreign exchange reserves have fallen by $45 billion in the last 8 months, from a peak of $642.5 billion on September 3, 2021. A variety of reasons have led to this fall -- RBI selling dollars to support the rupee, India's rising trade deficit to multi-year highs and risk aversion by foreign investors who have moved out of emerging markets including India to less riskier assets.
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