NEW DELHI [India]: India’s gold reserves have crossed the $100 billion mark for the first time in history, according to the latest data from the Reserve Bank of India (RBI). This milestone comes amid a global rally in gold prices, despite the central bank slowing its purchases significantly this year.
Gold reserves surge despite slower RBI buying
Data released on Friday shows that India’s gold holdings rose by $3.595 billion in the week ending October 10, taking the total to $102.365 billion. In contrast, the country’s overall foreign exchange reserves declined by $2.18 billion, settling at $697.784 billion.
Traders noted that India’s gold reserves are now at their highest level since 1996-97, with the share of gold in the country’s total reserves climbing to 14.7 per cent.
Over the past decade, the proportion of gold in India’s forex reserves has nearly doubled, rising from less than 7 per cent to almost 15 per cent. This growth reflects steady central bank accumulation combined with a surge in global bullion prices.
RBI’s restrained gold purchases in 2025
Despite this record, the RBI has markedly slowed gold purchases in 2025. For the first nine months of the year, the central bank bought gold in only four months, compared to near-monthly acquisitions in 2024. Cumulative purchases from January to September stood at just 4 tonnes, significantly lower than 50 tonnes during the same period in 2024.
Kavita Chacko, research head for India at the World Gold Council, said the increase in India’s gold share is largely driven by valuation gains from rising gold prices.
Global gold rally drives valuation gains
Gold prices have surged about 65 per cent since the beginning of 2025, influenced by macroeconomic factors, geopolitical risks, institutional demand, and investor sentiment. Heightened global tensions, de-dollarisation, and the threat of sanctions have prompted central banks worldwide to accumulate gold to diversify reserves away from the US dollar.
India, the world’s second-largest consumer of gold, relies heavily on imports to meet domestic demand. Gold remains culturally significant, serving as both a traditional investment and a status symbol.
Foreign exchange reserves decline
While gold holdings rose, India’s overall forex reserves fell by $2.176 billion during the week ending October 10, down to $697.784 billion. The previous week had seen a minor decline of $276 million, to $699.96 billion.
The drop was mainly due to a $5.605 billion decrease in foreign currency assets, which include the effects of fluctuations in non-US currencies like the euro, pound, and yen.
Conclusion:
India’s crossing of the $100 billion gold reserve milestone underscores its strategy of accumulating gold as a hedge against volatility in global markets. While overall forex reserves have slightly declined, the increased gold share reflects both cultural preferences and strategic financial planning, cementing India’s status as a major player in global bullion markets.