India’s gold reserves have surged dramatically by 211% since Shaktikanta Das took over as the Reserve Bank of India (RBI) governor in December 2018, according to the latest data from the central bank.
As of October 4, 2024, gold reserves accounted for $65.756 billion, a significant increase from $21.150 billion on December 7, 2018, showing a remarkable growth during Das’s tenure.
This surge in gold holdings accompanies a broader rise in India’s total foreign exchange (forex) reserves, which grew by 78.1% over the same period. India’s total forex reserves now stand at $701.176 billion, up from $393.735 billion in December 2018.
India’s forex reserves include foreign currency assets, gold reserves, Special Drawing Rights (SDRs), and the country’s reserve position in the International Monetary Fund (IMF). The foreign currency assets, expressed in U.S. dollar terms, also reflect the impact of the appreciation or depreciation of non-U.S. currencies such as the euro, pound, and yen.
Central banks globally have been accumulating gold as a hedge against rising inflation and increasing economic uncertainties. According to a Moneycontrol report from May 31, the RBI added 27.47 tonnes of gold to its reserves in the financial year 2023-24. This pushed the country’s total gold reserves to 822.10 tonnes, up from 794.63 tonnes the previous year.
The RBI’s gold holdings are split into two parts: 309.03 tonnes are held as backing for notes issued in India, while an additional 514.07 tonnes, including gold deposits, are held as assets of the central bank’s banking department. The RBI has also stored a portion of its gold reserves abroad.
In a significant move, the RBI recently brought home over 100 tonnes of gold from the United Kingdom, as reported by the Times of India on May 31. The last time the central bank added such a large quantity of gold to its reserves was in 1991. Another substantial addition of gold may take place in the coming months for logistical and storage diversification reasons.
Shaktikanta Das assumed the role of RBI governor on December 12, 2018, and has since overseen the substantial growth in both gold and total foreign exchange reserves during his tenure.
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