Mumbai, October 2025 — In a significant shift in its financial strategy, India’s gold reserves have surpassed the $100 billion mark for the first time, even as foreign currency holdings continue to dip. The Reserve Bank of India (RBI), like many global central banks, is leaning more heavily on gold amid rising economic uncertainty, making the yellow metal a central pillar of its reserve policy.
Gold Emerges as a Strategic National Asset
Gold has long held cultural and economic value in India, but its role has evolved from a traditional household asset to a critical component of the country’s foreign exchange reserves.
According to the latest data, the RBI’s gold holdings are now valued at $102.365 billion — approximately ₹9 lakh crore — marking the highest-ever valuation of India’s gold reserves. In contrast, foreign currency reserves have fallen by $2.18 billion, bringing the total down to $697.784 billion.
As a result, gold now accounts for 14.7% of India’s total forex reserves, nearly double the share from a decade ago and the highest since 1996–97.
Decline in Foreign Currency, Rise in Gold’s Share
Despite limited gold purchases in 2025 — only 4 tonnes between January and September, compared to 50 tonnes in the same period last year — the RBI’s gold reserve valuation has surged, thanks largely to rising international prices.
This reflects a global trend: central banks worldwide are increasing their gold holdings as a hedge against the volatility of the US dollar, trade disruptions, and geopolitical instability.
Why Central Banks Are Turning to Gold
According to the World Gold Council (WGC), the shift towards gold is being driven by:
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Universal Acceptance: Gold remains a universally trusted asset, beyond political or regional boundaries.
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Protection Against Dollar Volatility: As the US dollar faces global headwinds, gold provides a more stable alternative.
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Crisis-Resilient Asset: Whether during inflation, recession, or conflict, gold retains its value better than fiat currencies.
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Intrinsic Value: Gold’s limited supply and long-term demand ensure it remains a reliable store of wealth.
India’s Evolving Reserve Strategy
Though gold still forms a smaller portion of India’s overall reserves compared to currencies, the growing share signals a strategic pivot in how the country manages its economic safeguards.
This shift also mirrors a broader pattern among emerging economies: prioritizing stability over short-term liquidity, and preparing for future global shocks.
Conclusion
India’s record-breaking gold reserves signal more than just a milestone — they reflect a deliberate, forward-thinking approach to navigating an unpredictable global economy. As central banks continue to reassess their strategies, gold is reaffirming its role as a timeless, trusted financial anchor.
With a cautious yet confident stance, India is reinforcing its financial resilience — one ounce of gold at a time.