Where does India spend most of its foreign exchange?

Most of the Foreign exchange reserves of India are used for import Oil and petroleum products.

The Foreign exchange reserves of India consists of Foreign Currency Assets, Gold, Special Drawing Rights (SDRs), Reserve Tranche Position in the IMF. Of these Foreign currency Assets forms the major component of all reserves. By September 2017, India’s total value of Forex reserves stands at 400 billion dollars. India is now at sixth position in Forex reserves.