The Reserve Bank of India’s most recent foreign exchange reserves data shows that, despite a steep slowdown in central bank purchases this year, India’s gold holdings have surpassed the $100 billion mark for the first time, helped by a worldwide price surge.
While total foreign exchange reserves fell by $2.18 billion to $697.784 billion, RBI statistics released Friday indicated that India’s gold holdings increased $3.595 billion to $102.365 billion in the week ending October 10.
Traders report that gold’s proportion of India’s overall reserves increased to 14.7%, the highest level since 1996-97.
The proportion of gold in India’s foreign exchange reserves has nearly doubled over the last ten years, rising from less than 7% to nearly 15%, reflecting both a rise in the price of bullion globally and consistent central bank accumulation.
Even though the RBI’s gold purchases this year have significantly slowed, this has resulted in the achievement of the $100 billion milestone.
Compared to near-monthly increases in 2024, the central bank only purchased gold in four of the first nine months of 2025, according to data from the World Gold Council.
Compared to 50 tons over the same period last year, cumulative procurement from January to September was a pitiful 4 tons.
According to Kavita Chacko, the World Gold Council’s research head for India, the growing price of gold has led to a significant increase in the country’s foreign exchange reserves’ proportion of gold.
In 2025, gold has increased by almost 65% due to a strong combination of institutional, psychological, and macroeconomic factors.
Due to de-dollarization, increased geopolitical threats, and pressure from sanctions, central banks throughout the world are still hoarding gold as part of their reserve diversification away from the US dollar.
India, the second-biggest consumer of gold worldwide, depends on imports to keep up with demand.
Indian society has a strong tradition of purchasing gold, which is motivated by its dual function as a status symbol and an investment.
