India’s RBI Gold Reserves Surge to 880 Tonnes Amid Rising Global Uncertainties
Reserve Bank strengthens domestic gold holdings whilst forex reserves stabilise above $700 billion mark
Reserves climbed from 854.73 metric tonnes in September 2024 to 880.18 tonnes by the end of September 2025.
The Reserve Bank of India’s gold reserves have expanded impressively. This represents a substantial increase of 25.45 metric tonnes over the past twelve months. Additionally, India’s forex reserves have recovered and surpassed the $700 billion milestone recently. The RBI’s strategic repositioning of precious metals reflects India’s commitment to macroeconomic stability & strengthening external resilience.
Domestically stored gold now comprises a significant portion of total reserves. As of September 2025, approximately 575.82 metric tonnes remain housed within Indian vaults. Meanwhile, the Bank of England (BoE) & the Bank for International Settlements (BIS) maintain 290.37 metric tonnes in secure custody. Additionally, gold deposits account for 13.99 metric tonnes of the nation’s holdings.
India has strategically repatriated approximately 65 tonnes of gold domestically during the reporting period. This strategic move demonstrates the RBI’s focus on increasing sovereignty over its precious metal reserves. The central bank now holds roughly 65% of India’s total gold reserves within its facilities, significantly higher than the 60% domestic holding it had a year ago.
The proportion of gold in India’s total foreign exchange reserves has significantly increased in recent months. The gold share increased from 11.70% at the close of March 2025 to approximately 13.92% by the end of September 2025. Furthermore, the RBI’s gold holdings reached $97.5 billion as of September 30, 2025. Notably, this represents a remarkable surge, with gold reserves increasing by $31 billion during the current fiscal year.
Global gold prices have experienced considerable appreciation throughout 2025. Rising prices contributed significantly to the increased valuation of India’s reserves. The precious metal surged to $4,251 per ounce during mid-October, representing substantial gains over the year. Heightened geopolitical tensions & persistent economic uncertainties have driven international demand for safe-haven assets globally.
India’s total foreign exchange reserves rose to $702.28 billion for the week ending October 17, 2025. This recovery marks a significant milestone after several weeks of decline. Notably, the RBI has been strategically managing its currency intervention whilst expanding gold holdings systematically. Foreign currency assets declined marginally to $570.411 billion, primarily due to dollar sales for managing rupee volatility.
The RBI has purchased limited quantities of physical gold during the current fiscal year. The central bank acquired only 0.6 metric tonnes between April & September 2025. This consisted of 0.2 metric tonnes during September & 0.4 metric tonnes in June, respectively. However, rising international prices rather than increased purchasing activity have primarily driven valuation gains.
Central banks worldwide continue prioritising gold as a strategic reserve asset. Global central banks acquired a total of 166 tonnes of gold, supporting international demand. India remains among nations with the highest foreign exchange reserves, providing a formidable buffer against external financial shocks.
The RBI’s Half-Yearly Report on Management of Foreign Exchange Reserves (April-September 2025) reveals these developments. The report highlights India’s strong external position & capacity to navigate global economic uncertainties effectively. Economists emphasise that India’s growing reserve base strengthens its macroeconomic stability & enhances global investor confidence significantly.
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Source: Reserve Bank of India Half Yearly Report on Management of Foreign Exchange Reserves (April-September 2025); Business Line; Moneycontrol; News18; New Indian Express
