India has struck a shining milestone — the Reserve Bank of India’s gold reserves have crossed the $100 billion mark for the first time. RBI data shows that gold holdings climbed by $3.6 billion to $102.36 billion in the week ending October 10, even as total foreign exchange reserves inched down to $697.78 billion. Gold now accounts for 14.7% of India’s total reserves — the highest share since the late 1990s, news agency Reuters reported.
Interestingly, this record wasn’t driven by heavy buying. The RBI purchased only about 4 tons of gold between January and September, compared with 50 tons in 2024. Instead, the surge came mainly from valuation gains as global gold prices soared nearly 65% in 2025.
Buoyed by a surge in global bullion prices, the value of India’s gold holdings reached $102.365 billion, underlining the growing importance of gold in the country’s foreign exchange management strategy. The proportion of gold in total forex reserves has now risen to 14.7 percent, the highest in nearly three decades, despite a marginal decline in overall reserves during the week.
The surge in valuation is attributed primarily to an extraordinary rally in gold prices, which have jumped 65% so far in 2025. “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.” The rally has been fuelled by macroeconomic uncertainties and changing global sentiment towards reserve diversification.
The latest data indicate that gold now represents a much larger portion of India’s reserve assets than in previous decades. “The share of gold in India’s total reserves climbed to 14.7%, the highest since 1996-97, according to traders.”
Although the RBI’s pace of gold acquisition has moderated this year, with only four months of net buying in the first nine months of 2025, the impact of sharply higher prices has compensated for the slowdown. According to World Gold Council data, the RBI’s gold purchases have decreased compared to near-monthly additions in 2024. Nevertheless, the appreciation in value has been sufficient to push the reserves beyond the historic $100 billion threshold.
The growing share of gold in reserves comes against a backdrop of global central banks increasing their gold holdings as part of a broader move to diversify away from the US dollar. Factors such as heightened geopolitical risks, sanctions pressures, and the trend towards de-dollarisation are cited by analysts as major drivers behind the increased demand for gold at the sovereign level.
India’s position as the world’s second-largest consumer of gold further amplifies the significance of this milestone. The country relies heavily on imports to meet domestic demand, which is deeply embedded in Indian tradition and investment culture. The achievement reflects not only strategic decisions by the central bank but also macroeconomic currents affecting currency management worldwide.
World Gold Council experts note that the share of gold in India’s foreign exchange reserves has nearly doubled over the past decade, rising from below 7% to nearly 15%. This reflects both central bank accumulation and the significant rally in global gold prices.
RBI Chief Sanjay Malhotra commented: “India’s forex reserves appropriate; gold hoarding globally not a big concern: RBI Chief Sanjay Malhotra at IMF 2025.” His remarks at the IMF underscore the central bank’s confidence in the current reserve composition and its outlook on global reserve management practices.
