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 information reveals that gold holdings climbed by $3.6 billion to $102.36 billion within the week ending October 10, at the same time as complete overseas alternate reserves inched all the way down to $697.78 billion. Gold now accounts for 14.7% of India’s complete reserves — the very best share for the reason that late Nineteen Nineties, information company Reuters reported.
Apparently, 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 a substitute, the surge got here primarily from valuation good points as world gold costs soared almost 65% in 2025.
Buoyed by a surge in world bullion costs, the worth of India’s gold holdings reached $102.365 billion, underlining the rising significance of gold within the nation’s overseas alternate administration technique. The proportion of gold in complete foreign exchange reserves has now risen to 14.7 p.c, the very best in almost three many years, regardless of a marginal decline in total reserves through the week.
The surge in valuation is attributed primarily to a rare rally in gold costs, which have jumped 65% up to now in 2025. “The share of gold in India’s overseas alternate reserves has elevated considerably, largely pushed by valuation good points from the rising gold worth, stated Kavita Chacko, analysis head for India on the World Gold Council.” The rally has been fuelled by macroeconomic uncertainties and altering world sentiment in the direction of reserve diversification.
The most recent information point out that gold now represents a a lot bigger portion of India’s reserve belongings than in earlier many years. “The share of gold in India’s complete reserves climbed to 14.7%, the very best since 1996-97, in line with merchants.”
Though the RBI’s tempo of gold acquisition has moderated this yr, with solely 4 months of web shopping for within the first 9 months of 2025, the impression of sharply larger costs has compensated for the slowdown. In keeping with World Gold Council information, the RBI’s gold purchases have decreased in comparison with near-monthly additions in 2024. Nonetheless, 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 in opposition to a backdrop of worldwide central banks growing their gold holdings as a part of a broader transfer to diversify away from the US greenback. Components corresponding to heightened geopolitical dangers, sanctions pressures, and the development in the direction of de-dollarisation are cited by analysts as main drivers behind the elevated demand for gold on the sovereign degree.
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 fulfill 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 notice that the share of gold in India’s overseas alternate reserves has almost doubled over the previous decade, rising from beneath 7% to almost 15%. This displays each central financial institution accumulation and the numerous rally in world 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 world reserve administration practices.
