India’s gold holdings have achieved a historic milestone, surpassing the $100 billion mark for the first time ever. The latest data from the Reserve Bank of India (RBI) shows that as of October 10, the country’s gold reserves stood at $102.36 billion, reflecting a surge of $3.6 billion in just one week. This comes even as India’s overall foreign exchange reserves dipped by $2.18 billion to $697.78 billion during the same period.
Gold’s Highest Share In Forex Reserves Since 1996
According to traders, the share of gold in India’s total reserves has climbed to 14.7 percent — the highest since 1996–97. The sharp rise is largely attributed to soaring global gold prices and valuation gains, even though the RBI has slowed its pace of gold accumulation this year.
Over the last decade, India’s gold share in foreign exchange reserves has almost doubled from less than 7 percent to nearly 15 percent. This significant shift reflects the combined effect of steady central bank buying and a robust international gold rally.
Why India’s Gold Reserves Are Rising
Despite the RBI purchasing gold less aggressively this year, valuation gains from the global bullion price rally have pushed India’s reserves to record highs. Between January and September 2025, the central bank added only 4 tons of gold — far lower than the 50 tons it acquired during the same period in 2024, according to the World Gold Council.
However, with gold prices surging by nearly 65 percent since the beginning of 2025, the value of existing holdings has ballooned, leading to the $100 billion milestone.
Global Factors Driving The Rally
Experts say that rising geopolitical tensions, the global de-dollarisation movement, and increasing sanctions have prompted central banks worldwide to diversify away from the US dollar, boosting demand for gold as a safer asset.
Kavita Chacko, Research Head for India at the World Gold Council, noted that the surge in India’s gold share is mainly valuation-driven. “The increase in gold prices has significantly raised the value of India’s holdings, contributing to the record share in total reserves,” she said.
India’s Deep Cultural And Economic Connection With Gold
India, the world’s second-largest consumer of gold, continues to rely heavily on imports to meet its domestic demand. Beyond being an investment, gold holds immense cultural and emotional significance across Indian households often seen as a symbol of prosperity, security, and tradition.
With the festive and wedding seasons boosting demand and central banks holding more gold than ever, the yellow metal remains both a cultural cornerstone and a financial safeguard for India.
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