Central banks across the globe are ramping up their gold reserves as a hedge against geopolitical instability, inflation, and the rising trend of de-dollarisation—and India is firmly following suit. According to the Reserve Bank of India’s latest Half-Yearly Report on Management of Foreign Exchange Reserves (published on May 5), the share of gold in India’s forex reserves has nearly doubled in four years, reflecting a global shift toward safer assets.
As of March 2025, the RBI held 879.59 metric tonnes of gold, up from 695.31 tonnes in March 2021. In dollar terms, the value of this gold stood at USD 77.793 billion, making up 11.70% of India’s total foreign exchange reserves—compared to just 5.87% in March 2021 and 9.32% as recently as September 2024.
The RBI’s gold stockpile is now distributed as follows:
- 511.99 metric tonnes stored domestically
- 348.62 metric tonnes held in safe custody with the Bank of England and the Bank for International Settlements (BIS)
- 18.98 metric tonnes kept as gold deposits
According to Sachin Jain, Regional CEO, India, World Gold Council (WGC), central banks worldwide are increasing their gold holdings due to “de-dollarisation, trade sanctions, inflation concerns, and volatile geopolitics.”
“Central banks have been net buyers of gold for 15 years, but purchases have surged in the past three years—with over 1,000 tonnes bought each year since 2022, and 1,045 tonnes in 2024 alone,” Jain told media.
“Despite record-high gold prices, 17 tonnes of net buying was reported globally in March 2025.”
Jain also pointed out that India’s gold reserves are now at their highest in both quantity and percentage terms, though the RBI’s pace of accumulation has recently moderated.
- Between January and November 2024, the RBI bought an average of 6.6 tonnes per month.
- It paused purchases in December 2024 and February 2025, and
- Made below-average buys in January and March 2025.
This shift, Jain says, may signal a more measured strategy, but still underscores gold’s growing strategic role in India’s reserves management.
Historically, gold has been a safe-haven asset, particularly during periods of market volatility and global fragmentation—retaining or appreciating in value even when currencies weaken. The RBI’s shift reflects broader global trends in monetary policy and asset diversification as central banks navigate an increasingly complex international landscape.