India's Gold Reserves Surpass $100 Billion as Safe Haven Demand Soars

Gold's safe haven status boosts India's reserves. RBI's strategic accumulation strengthens ties with China and other countries.

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2025 October 18 . 8:02 PM

1 min read

In the picture I can see the gold coin and there is a photo of a woman on the gold coin.

India's Gold Reserves Surpass $100 Billion as Safe Haven Demand Soars

India's gold reserves have reached a new milestone, surpassing $100 billion for the first time. This significant increase, driven by a surge in demand for the precious metal as a safe haven asset, has seen gold's share in the country's foreign exchange reserves nearly double over the past decade to around 15 percent.

The Reserve Bank of India (RBI) has played a pivotal role in this growth. In the week ending October 10, the gold component in India's foreign exchange reserves increased by $3.595 billion to $102.365 billion. This rise comes amidst a broader decline in overall foreign exchange reserves, which decreased by $2.18 billion to $697.784 billion. The RBI's release of dollars to support the rupee contributed to this decline.

The RBI's gold accumulation strategy has been notable in recent years. Since 2024, it has added approximately 75 tonnes to its gold reserves, reaching about 880 tonnes by mid-2024. This diversification strategy, analysts suggest, is a response to geopolitical tensions with the US and a move to strengthen ties with China and other countries. Central banks worldwide have been accumulating gold as a safe-haven asset, reflecting a broader trend.

Gold prices have soared by up to 65 percent in 2025 due to increased demand as a safe haven asset. In India, where gold buying is deeply rooted in culture and used extensively in jewellery gifts, this trend is expected to continue. As India remains the world's second-largest consumer of gold, the RBI's gold accumulation strategy is likely to persist, further bolstering India's foreign exchange reserves.