India’s international alternate reserves rose by $4.5 billion to $702.3 billion for the week ended October 17, primarily pushed by a rise within the worth of gold reserves, in keeping with information launched by the Reserve Financial institution of India (RBI) on Friday.
India’s gold reserves held by the RBI as a part of the nation’s international alternate reserves surged by $6.2 billion to surpass the $108.5 mark for the primary time on the again of a pointy rise within the worth of the dear steel and elevated purchases by the central financial institution.
Overseas forex belongings, the most important a part of the reserves, fell by $1.7 billion to $570.4 billion in the course of the week. These belongings are affected by adjustments within the worth of currencies such because the euro, pound, and yen.
India’s reserve place with the Worldwide Financial Fund (IMF) declined by $30 million to $4.62 billion in the course of the week, RBI information confirmed. The share of gold in India’s international alternate reserves has virtually doubled over the previous decade – from beneath 7 per cent to just about 15 per cent – reflecting each regular central financial institution accumulation and a surge in international bullion costs.
That is the best proportion of gold within the nation’s complete reserves since 1996-97, in keeping with market analysts.
Gold costs have shot up by as a lot as 65 per cent in 2025 as a result of elevated demand for the dear steel as a protected haven asset amid rising geopolitical uncertainty within the Center East and the commerce wars triggered by the US tariff hikes.
Central banks worldwide have collected substantial quantities of gold as a safe-haven asset of their international alternate reserves amid uncertainty created by geopolitical tensions. The share of gold maintained by the Reserve Financial institution of India as a part of its international alternate reserves has virtually doubled since 2021.
The RBI has added roughly 75 tonnes to its gold reserves since 2024, bringing its complete holdings to 880 tonnes, which now represent about 14 per cent of India’s complete international alternate reserves, in keeping with a Morgan Stanley report.
India is the world’s second-largest shopper of gold, subsequent solely to China and depends on imports to fulfill demand. Shopping for gold is deeply rooted in Indian tradition and is utilized in massive portions within the type of jewelry presents for the bride and bridegroom throughout wedding ceremony ceremonies. It additionally constitutes an vital channel of safe-haven funding and a standing image for households and people.
