Mumbai, May 6: In a significant shift reflecting global economic uncertainties, the Reserve Bank of India (RBI) has nearly doubled the share of gold in its foreign exchange reserves over the past four years, with gold now comprising 11.70% of the total reserve portfolio, up from 5.87% in March 2021.
The data, published in the RBI’s Half-Yearly Report on Management of Foreign Exchange Reserves released on May 5, shows that as of March 2025, the central bank held gold worth USD 77.793 billion.
This marks a sharp rise in gold’s share compared to September 2024, when it stood at 9.32%.
In terms of quantity, India’s official gold holdings rose from 695.31 metric tonnes in March 2021 to 879.59 metric tonnes by March 2025. Of this, 511.99 tonnes are held domestically, while 348.62 tonnes are stored in secure locations abroad, including the Bank of England and the Bank for International Settlements (BIS).
An additional 18.98 tonnes are held as gold deposits.
“Over the past year alone, gold’s share in the RBI’s forex reserves has increased by nearly four percentage points, reflecting a net addition of 57.5 tonnes,” said Sachin Jain, Regional CEO, India, World Gold Council (WGC), in a note to ANI.
Jain attributed the trend to global factors such as de-dollarisation, inflation fears, trade sanctions, and escalating geopolitical tensions.
“There are many factors that have influenced gold buying, including that by central banks across the world.
These include de-dollarisation, trade sanctions, and inflation concerns, but most importantly the volatile geopolitical situation across the world,” he noted.
Central banks have been net buyers of gold for 15 consecutive years, but the pace has picked up sharply since 2022.
“Global central bank purchases have consistently crossed 1,000 tonnes annually since 2022, including 1,045 tonnes in 2024. In March 2025 alone, central banks reported net buying of 17 tonnes despite record-high prices,” Jain added.
India’s recent gold accumulation reflects this global trend. However, Jain noted a slight moderation in the RBI’s pace of buying in recent months.
“After averaging 6.6 tonnes per month from January to November 2024, the RBI paused purchases in December and February. Its additions in January and March were also below average, suggesting a more measured approach—though gold’s strategic importance remains intact,” he said.
Gold has historically served as a safe-haven asset, maintaining or even increasing in value during periods of financial and geopolitical instability.
For India, the increase in gold reserves is not only a hedge against global volatility but also a strategic shift in reserve management amidst an increasingly fragmented global order.