India's Golden Strategy: RBI Doubles Gold Reserves Amid Global Uncertainty

Central banks globally are increasingly turning to gold as a safe-haven asset in their foreign exchange reserves, and the Reserve Bank of India (RBI) is following suit. The RBI has almost doubled its gold reserves since 2021, as part of a broader strategy amid global economic uncertainties.

The RBI's Management of Foreign Exchange Reserves report reveals that the gold's share in its forex reserves, in dollar terms, climbed from 5.87 percent in March 2021 to 11.70 percent by March 2025. As of March 2025, the RBI held gold worth USD 77.793 billion, totaling 879.59 metric tonnes, a significant increase from 695.31 metric tonnes in March 2021.

Economic factors such as de-dollarisation, trade sanctions, and inflation concerns, combined with geopolitical volatility, have prompted central banks, including the RBI, to increase gold purchases, explained Sachin Jain, Regional CEO, India, World Gold Council. Central banks have been net gold buyers for fifteen years, with purchases accelerating in the past three years to over 1,000 tons annually. Globally, this trend is likely to continue, shaping market dynamics.

(With inputs from agencies.)