Top 7 Facts about India's Gold Reserves in 2025

By Team Gullak

Last updated : Sep 25, 2025

4 min read

India's gold reserves have reached a record 880 tonnes in 2025, driven by a strategic shift in monetary policy amidst global economic uncertainty, positioning India as the second-largest institutional buyer globally, with reserves valued at ₹4.32 lakh crore.

How we selected the top 7 facts (methodology)

Data sources and credibility

We relied on authoritative sources for accuracy. Key data includes India's 880-tonne holdings from Trading Economics and the 57% value increase in FY25 from Moneycontrol. Verification includes official RBI publications, CEIC Data, and reputable financial news outlets.

We define tonne as a metric ton (1,000 kilograms), the standard measurement for central bank gold reserves.

Ranking criteria and weightage

Each fact was evaluated using a scoring framework:

This methodology aligns with Gullak's mission to empower savers with actionable financial insights.

Fact #1 – RBI's record-high holdings of 880 tonnes

Total tonnes vs. previous peaks

As of Q2 2025, the RBI's gold reserves stand at 880 tonnes, surpassing the previous peak of 822.10 tonnes in FY24, reflecting a 7% year-over-year increase.

Comparison with other central banks

India's rank among global central bank gold holders is as follows:

India has became the second-largest institutional gold buyer globally in 2024.

Fact #2 – Reserve value jumped 57% in FY 25

Value in rupees (₹4.32 lakh crore) and dollars ($71 bn)

India's gold reserves value surged to ₹4.32 lakh crore (approximately $70.9 billion) in FY25, marking a 57% increase from the previous fiscal year, one of the most significant in RBI history.

Drivers behind the surge

Key factors for this value increase include:

Aggressive repatriation strategy: 100 tonnes of gold were brought back from overseas vaults.

Global central bank buying surge: Over 1,000 tonnes purchased annually.

Rising domestic demand: Increased demand during festival seasons.

Repatriation refers to bringing gold from foreign vaults to the home country, enhancing control over reserves.

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Fact #3 – Gold now makes up 12.1% of India's forex reserves

Historical share trend

Gold's share in India's forex reserves has grown:

July 2024: 8.9%

July 2025: 12.1%

This 3.2 percentage point increase marks gold as the fastest-growing component of India's forex reserves in the past five years.

Strategic importance for currency stability

Increased gold allocation provides a hedge against dollar volatility, stabilizing the rupee during financial stress, thus enhancing monetary policy resilience.

Fact #4 – Aggressive repatriation adds 100 tonnes domestically

Domestic vs overseas storage split (200 t vs 368 t)

The RBI's gold storage distribution is:

The 100-tonne repatriation reduces overseas storage ratio and enhances domestic control.

How repatriation supports market interventions

Domestic storage allows the RBI to act quickly during festival seasons when demand spikes, minimizing delays associated with international transfers and reducing geopolitical risk exposure.

Fact #5 – India ranks among the world's top gold-holding nations

Global ranking (7th-largest overall, 2nd-largest institutional buyer)

India's global gold rankings are impressive:

1. 7th-largest overall gold reserves (according to BullionVault rankings)

2. 2nd-largest institutional buyer in 2024 (Indian Express)

Comparison with the United States, Germany, China

India's reserves relative to other countries:

Comparison with the United States, Germany, China

India's reserves relative to other countries:

India's per-capita gold holding exceeds many developed economies, reflecting cultural affinity for gold.

Fact #6 – Gold as a hedge against inflation and dollar risk

Central-bank perspective on safe-haven assets

Gold is a critical hedge against inflation and dollar weakness, providing stability during economic uncertainty (TradingView's analysis).

Implications for retail investors and digital gold

The RBI's strategy offers lessons for individual investors. Gullak's digital gold product allows retail investors to mirror this approach, providing a low-cost, liquid hedge against currency devaluation and inflation through automated savings.

Fact #7 – Outlook: continued accumulation and repatriation through 2026

Expected purchase volumes and policy signals: Market forecasts indicate central banks will continue purchasing over 1,000 tonnes annually, with the RBI planning additional 50-tonne purchases each fiscal year through 2026. Sustained institutional accumulation may support higher global gold prices, benefiting digital gold investors. Building exposure through platforms like Gullak's automated savings plans could align with these macroeconomic trends.

(Note for readers: This report was made by collating data from multiple research papers around the internet. Gullak doesn't hold the right to any of these facts, for more depth navigate to the original sources cited in the article. For retail investors - Please do your own due dilligence before investing in gold or any gold asset)