India's gold reserves have crossed the $100bn mark for the first time, according to the Reserve Bank of India's latest foreign exchange reserves data, buoyed by a global price rally even as the central bank's purchases slowed sharply this year.
India's gold holdings rose by $3.595bn to $102.365bn in the week through October 10, RBI data showed, while overall foreign exchange reserves declined $2.18bn to $697.784bn.
The share of gold in India's total reserves climbed to 14.7%, the highest since 1996-97, according to traders.
Gold's share in India's foreign exchange reserves has almost doubled over the past decade — from below 7% to nearly 15% — reflecting both steady central bank accumulation and a surge in global bullion prices.
That's led to the $100bn milestone being hit despite a marked slowdown in the RBI's gold purchases this year.
Share of gold in India's total FX reserves is at its highest in nearly three decades
The central bank bought gold in only four of the first nine months of 2025, compared with near-monthly additions in 2024, according to World Gold Council data.
Cumulative buying from January to September stood at just 4 tonnes, sharply lower than 50 tonnes in the same period a year earlier.
The share of gold in India's foreign exchange reserves has increased significantly, largely driven by valuation gains from the rising gold price, said Kavita Chacko, research head for India at the World Gold Council.
Gold has surged about 65% in 2025, powered by a potent mix of macroeconomic, institutional and psychological drivers.
Global central banks continue to accumulate gold as part of reserve diversification away from the US dollar — a trend spurred by heightened geopolitical risks, sanctions pressures and de-dollarisation.
India is the world's second-largest consumer of gold and relies on imports to meet demand. Buying gold is deeply rooted in Indian culture, driven by tradition and its role as both an investment and a status symbol.