India's Gold Reserves Jump $31 Billion in FY26 Due to RBI Buying and Price Boom

India’s gold reserves have climbed sharply this financial year, jumping by $31 billion to $108 billion as of October 17, 2025, up from $77 billion at the end of March. The surge stems from the Reserve Bank of India’s (RBI) fresh gold purchases and valuation gains amid rising global prices.

Gold Accumulation, Price Surge and Diversification Strategy

According to RBI data, the expansion in gold holdings was fuelled by both fresh buying and a rally in prices, with gold reaching $4,251 per ounce, compared with $2,857 per ounce at the close of FY24–25. Central banks across emerging markets, including India, have been lifting gold exposure to hedge against currency volatility and interest-rate risk.

RBI’s Gold Repatriation and Reserve Composition

The RBI accelerated gold onshoring in 2025, bringing home 64 tonnes in the first half of the fiscal year. As of September 2025, India held 880.8 tonnes of gold, 575.8 tonnes domestically and 290.3 tonnes with the Bank of England and Bank for International Settlements (BIS), with another 14 tonnes classified as deposits. 

By comparison, at the end of March 2025, holdings stood at 879 tonnes, including 512 tonnes in India and 348.6 tonnes abroad. Since March 2023, the RBI has repatriated 274 tonnes.

Rising Gold Share in Total Reserves

The yellow metal’s rising value has lifted gold’s share in India’s total reserves to 13.9 %, up from 9 % in September 2024 and just 4 % a year earlier. India’s total foreign exchange reserves stood at $579.18 billion at the end of September 2025, with $489.54 billion invested in securities, $46.11 billion deposited with other central banks and the BIS, and $43.53 billion held with commercial banks overseas. 

The RBI also manages a small portion of its reserves through external asset managers to test new investment strategies under the RBI Act 1934.

Read More: Gold Prices Slip Below $4,000/Oz as US China Trade Optimism Weighs on Demand!

Conclusion

India’s $108 billion gold stockpile and rapid repatriation mark a decisive shift in reserve management. By diversifying assets and prioritising physical custody, the RBI is fortifying the nation’s financial sovereignty, building resilience against currency shocks, interest-rate swings, and global geopolitical instability.

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