India’s gold reserves cross $100 billion for the primary time, share in foreign exchange reserves at 14.7%
India has struck a shining milestone — the Reserve Financial institution of India’s gold reserves have crossed the $100 billion mark for the primary time. RBI knowledge exhibits that gold holdings climbed by $3.6 billion to $102.36 billion within the week ending October 10, whilst complete overseas trade reserves inched all the way down to $697.78 billion. Gold now accounts for 14.7% of India’s complete reserves — the best share for the reason that late Nineteen Nineties, information company Reuters reported.
Curiously, this file wasn’t pushed by heavy shopping for. The RBI bought solely about 4 tons of gold between January and September, in contrast with 50 tons in 2024. As an alternative, the surge got here primarily from valuation beneficial properties as international gold costs soared practically 65% in 2025.
Buoyed by a surge in international bullion costs, the worth of India’s gold holdings reached $102.365 billion, underlining the rising significance of gold within the nation’s overseas trade administration technique. The proportion of gold in complete foreign exchange reserves has now risen to 14.7 %, the best in practically three a long time, regardless of a marginal decline in total reserves through the week.
The surge in valuation is attributed primarily to a unprecedented rally in gold costs, which have jumped 65% up to now in 2025. “The share of gold in India’s overseas trade reserves has elevated considerably, largely pushed by valuation beneficial properties from the rising gold value, stated Kavita Chacko, analysis head for India on the World Gold Council.” The rally has been fuelled by macroeconomic uncertainties and altering international sentiment in the direction of reserve diversification.
The newest knowledge point out that gold now represents a a lot bigger portion of India’s reserve belongings than in earlier a long time. “The share of gold in India’s complete reserves climbed to 14.7%, the best since 1996-97, in response to merchants.”
Though the RBI’s tempo of gold acquisition has moderated this 12 months, with solely 4 months of internet shopping for within the first 9 months of 2025, the influence of sharply increased costs has compensated for the slowdown. In response to World Gold Council knowledge, the RBI’s gold purchases have decreased in comparison with near-monthly additions in 2024. However, the appreciation in worth has been adequate to push the reserves past the historic $100 billion threshold.
The rising share of gold in reserves comes towards a backdrop of world central banks rising their gold holdings as a part of a broader transfer to diversify away from the US greenback. Components equivalent to heightened geopolitical dangers, sanctions pressures, and the pattern in the direction of de-dollarisation are cited by analysts as main drivers behind the elevated demand for gold on the sovereign stage.
India’s place because the world’s second-largest shopper of gold additional amplifies the importance of this milestone. The nation depends closely on imports to satisfy home demand, which is deeply embedded in Indian custom and funding tradition. The achievement displays not solely strategic selections by the central financial institution but additionally macroeconomic currents affecting foreign money administration worldwide.
World Gold Council consultants word that the share of gold in India’s overseas trade reserves has practically doubled over the previous decade, rising from beneath 7% to almost 15%. This displays each central financial institution accumulation and the numerous rally in international gold costs.
RBI Chief Sanjay Malhotra commented: “India’s foreign exchange reserves applicable; gold hoarding globally not an enormous concern: RBI Chief Sanjay Malhotra at IMF 2025.” His remarks on the IMF underscore the central financial institution’s confidence within the present reserve composition and its outlook on international reserve administration practices.
