India’s central bank has achieved a major milestone in 2025, with the Reserve Bank of India’s (RBI) gold reserves surpassing $80 billion for the first time. This surge comes amid continued diversification of India’s foreign exchange reserves and a sharp rise in global gold prices.
According to RBI data, gold reserves stood at approximately $83.3 billion as of June 13, 2025, up from around $67 billion at the start of the year. The value briefly touched $86.3 billion during the second week of June, driven by both increased holdings and a global gold rally.
RBI’s Gold Holdings: Key Figures
- Total gold holdings: 879.58 tonnes (as of March 31, 2025)
- Gold added in FY24: Over 57 tonnes
- Gold repatriated to India: 39 tonnes
- Share of gold in foreign reserves: Up from 8.3% in 2023 to nearly 12% in 2025
Why RBI is Buying More Gold
RBI’s aggressive gold accumulation aligns with a global trend among central banks seeking to hedge against geopolitical uncertainty, inflation, and potential currency volatility. Analysts believe gold is being used as a “strategic buffer” as global economic risks persist in 2025.
Apart from new purchases, the RBI has also increased its repatriation of gold from overseas vaults. In FY24, around 39 tonnes of gold were shifted from Bank of England vaults to India, further enhancing domestic custody and control.
Global Factors Boosting Gold Prices
In 2025, gold prices have seen significant appreciation due to:
- Geopolitical tensions in the Middle East and Eastern Europe
- Elevated inflation levels globally
- Central bank demand reaching historic highs
- Weakening of major currencies like the Euro and Yen
This price momentum has increased the dollar valuation of India’s reserves even without aggressive new buying in recent months.
Strategic Implications
India’s move to increase gold in its forex basket is seen as a move toward resilience and stability. Experts note that gold acts as a non-correlated asset to the US dollar and equities—helping reduce risks during market shocks.
Furthermore, the RBI’s actions reflect a long-term dedollarization trend, visible across emerging economies trying to reduce reliance on traditional currency reserves.
