Gold reserves in India: Akshaya Tritiya is on 30 April 2025, this day is considered auspicious for buying gold. Like Dhanteras, people of India also buy gold on Akshaya Tritiya. Not only Indians are interested in this, but the Reserve Bank of India (RBI) is also equally interested in buying gold. Although India has a huge amount of gold reserves, RBI still keeps buying gold. So let’s know what is the reason behind this.
The chain of crisis is gold.
Gold has taken deep roots in Indian families, and is expected to sell gold to survive in times of economic crisis. Central banks around the world also calculate similar types. Like the general public, banks also consider gold as ‘safe shelter assets’, which means ‘a reliable asset in the time of economic crisis’. When the global economic equations are disturbed due to factors such as Corona epidemic, Russia-Ukraine War, Israel-Pilistine War and Tram administration tariff policies, this yellow metal is the only thing that protects any country from economic storms. This is the reason that central banks from many countries including RBI are buying gold rapidly.
How much gold does India have?
In FY 2024-25, RBI bought 57.5 tonnes of gold. With this, by March 2025, the gold reserves of RBI have increased to 880 tonnes. It was 653 tonnes in FY 2020, ie 35% increase in 5 years. India is now ranked 7th in the world in terms of gold reserves. Our country was ranked 10th in 2015.
Why is RBI buying gold?
The main reason behind buying more gold by RBI is dollar instability. Despite being considered a very powerful currency globally, the dollar has been unstable over the years. Currently the dollar index has fallen below 100, so it is not beneficial to keep a large amount of dollar as a store. Since metal like gold is more stable than dollars, its purchase provides more financial security. This is the reason that the RBI is buying gold instead of being completely dependent on the dollar. This practice is becoming increasingly common in central banks of other countries. Keeping the store balanced is an intelligent step.
How will gold benefit the Indian economy?
Buying gold is a strategic step that protects India from dollar instability and strengthens the country’s foreign currency. This strengthens India’s ‘Forex Reserve’ i.e. ‘foreign exchange reserves’, currency remains stable and it makes it easier to control inflation. Gold share in India’s foreign exchange reserves has increased from 6.86% in 2021 to 11.35% in 2024.
The price of gold continues to increase.
The price of gold is continuously increasing. Gold prices are at a record level at this time. Its price is expected to increase further. Therefore, the more gold with RBI, the higher the value of it!
India’s reputation increased internationally
At the international level, the reputation of a country is also determined by the amount of gold reserves with him. The more gold with a country, the more powerful it will be. The image of a country is considered bright in international trade due to the abundance of gold. Since India has gold reserves, many countries have been doing international trade in rupee with India.
Earned strong dividend
Increase in reserved value of gold reserves gives strong dividends, which increases the country’s income.
Global investors have increased confidence
The country’s huge gold reserves strengthens India’s financial position, which increases the confidence of global investors and inspire them to invest in India.
There is a large amount of gold stored in India.
Most countries keep their gold reserves in the United States and Europe for security. India has also done this. However, in the last few years, India has started bringing back its gold kept abroad. Since September 2022, RBI has brought 214 tonnes of gold back to India and stored in the country. The purpose of doing this is that it can be easily available when needed.
