The Reserve Bank of India (RBI) now holds a record 880 metric tonnes of gold, valued at over ₹4.32 lakh crore ($71 billion), a stockpile greater than the annual GDP of nearly 50 countries.
Fueled by record global gold prices and steady accumulation since 2020, India’s reserves have surged both in volume and in value, though RBI has recently paused fresh buying amid soaring prices.
According to the RBI bulletin and market data up to September 2025, the central bank’s holdings are at their highest level ever, reflecting a net addition of about 57 tonnes in the last financial year.
The sharp appreciation in global gold prices—up nearly 40% in the past year—has magnified the value of India’s bullion. A year ago, RBI’s gold was worth ₹2.74 lakh crore; today, it stands at ₹4.32 lakh crore, a 57% increase in rupee terms.
Gold now makes up about 12–12.5% of India’s forex reserves, up from 8–9% last year, highlighting the metal’s growing role in India’s financial security.
The RBI’s strategy mirrors a wider global trend. Since 2020, central banks have been buying over 1,000 tonnes of gold annually, driven by four key motivations:
Diversification from the U.S. dollar as its share in global reserves declines.
Hedge against inflation and currency devaluation, with major world currencies under pressure.
Geopolitical insurance, since gold cannot be frozen or sanctioned like digital or dollar assets—a lesson reinforced by the freezing of Russian reserves in 2022.
Future monetary systems, as commodity-linked or digital reserve currencies emerge.
While RBI was an aggressive buyer through 2024 and early 2025, it has paused fresh purchases since June 2025. Analysts attribute the pause to high global prices and expectations of a possible correction. Experts stress this is not a reversal of strategy but a risk-management move, with RBI expected to resume accumulation if prices ease.
At $71 billion, RBI’s gold is worth more than the GDP of countries such as Cyprus, Iceland, Senegal, Georgia, and Zambia. In relative terms, India’s gold hoard is over 200% of Cyprus’s GDP and nearly 400% of Jamaica’s.
A World Gold Council survey shows 95% of central bankers expect gold reserves to rise globally over the coming year. For RBI, the pause may be temporary, but the direction remains clear—gold is a cornerstone of India’s long-term reserve strategy, providing protection against inflation, geopolitics, and shifts in the global monetary order.
