Daijiworld Media Network - New Delhi

New Delhi, Oct 17: For the first time ever, India’s gold reserves have crossed the $100 billion mark, driven by soaring global gold prices and increased purchases by the Reserve Bank of India (RBI). According to RBI data released on Friday, the gold component in the country’s foreign exchange reserves rose by $3.595 billion, reaching $102.365 billion as of October 10.

However, despite the surge in gold value, India’s overall forex reserves declined by $2.18 billion to $697.784 billion, as the RBI intervened in the currency markets to support the weakening rupee.

Gold now accounts for nearly 15% of India’s total foreign exchange reserves, doubling its share over the past decade. This marks the highest gold-to-reserve ratio since 1996-97, underscoring its growing strategic importance.

The increase is attributed to two major factors:

1. A 65% jump in gold prices in 2025, fuelled by heightened geopolitical tensions in the Middle East and US-led trade wars, which have spurred demand for safe-haven assets.
2. The RBI’s proactive stance on diversifying its reserves, with around 75 tonnes of gold added since 2024, bringing total holdings to approximately 880 tonnes, according to a Morgan Stanley report.

Analysts say the RBI is following a global trend, as central banks around the world continue to stockpile gold in response to financial instability, sanctions risks, and declining confidence in fiat currencies.

India — the world’s second-largest consumer of gold after China — has a deeply ingrained cultural and economic relationship with the metal. Gold plays a central role in Indian weddings, festivals, and personal investments, often seen as a symbol of wealth, security, and status.

With gold’s share in reserves at a multi-decade high, experts say the RBI’s strategy reflects a hedge against volatility, while also aligning with long-term investment trends shaped by global uncertainty.