India’s Gold Reserves Surpass $100 Billion for First Time
India’s gold reserves have achieved a historic milestone, crossing the $100 billion mark for the first time ever, according to the latest Reserve Bank of India data released on Friday. The gold holdings surged to $102.365 billion in the week through October 10, representing the highest share in India’s foreign exchange reserves in nearly two decades.
Key Takeaways
- India’s gold reserves hit record $102.365 billion
- Gold’s share in forex reserves reaches 14.7%, highest since 1996-97
- Overall forex reserves declined by $2.18 billion to $697.784 billion
- Gold price surge of 65% in 2025 drove valuation gains
Historic Milestone in Gold Reserves
The gold reserves increased by $3.595 billion during the reporting week, reaching $102.365 billion. This represents the highest level since 1996-97, with gold’s share in total reserves climbing to 14.7%. Over the past decade, India’s gold share in foreign exchange reserves has nearly doubled from less than 7% to nearly 15%.
Behind the $100 Billion Breakthrough
The milestone was achieved despite the RBI significantly slowing its gold purchases this year. According to World Gold Council data, the central bank purchased gold in only four of the first nine months of 2025, compared to near-monthly additions in 2024. Cumulative buying from January to September stood at just 4 tons, markedly lower than 50 tons in the same period a year earlier.
“The share of gold in India’s foreign exchange reserves has increased significantly, largely driven by valuation gains from the rising gold price,” said Kavita Chacko, research head for India at the World Gold Council.
Gold prices have rallied approximately 65% since the beginning of 2025, driven by a combination of macroeconomic factors, institutional demand, and psychological drivers. Heightened geopolitical risks, de-dollarisation trends, and sanction pressures have prompted global central banks to accumulate gold to diversify reserves away from the US dollar.
Forex Reserves Decline
While gold reserves surged, India’s overall foreign exchange reserves declined by $2.176 billion to $697.784 billion during the week ended October 10. Foreign currency assets, a major component of the reserves, decreased by $5.605 billion to $572.103 billion. In the previous reporting week, the overall reserves had decreased by $276 million to $699.96 billion.
India remains the world’s second-largest consumer of gold and relies entirely on imports to meet domestic demand. Gold buying is deeply rooted in Indian culture, serving both as a traditional investment and status symbol.
