Since Shaktikanta Das took over as the Governor of the Reserve Bank of India (RBI) in December 2018, India’s gold reserves have surged by an impressive 211 percent, according to RBI data. As of October 4, 2024, the value of gold in India’s foreign exchange reserves stood at $65.756 billion, up from $21.150 billion on December 7, 2018.

Significant Growth in Foreign Exchange Reserves

India’s total foreign exchange reserves have also seen substantial growth during Das’s tenure. As of October 4, 2024, the country’s forex reserves amounted to $701.176 billion, representing a 78.1 percent rise from $393.735 billion in December 2018. These reserves consist of foreign currency assets, gold reserves, Special Drawing Rights (SDR), and India’s reserve position in the IMF.

Global Trends in Central Bank Gold Purchases

The RBI’s increased gold holdings reflect a broader global trend. Central banks worldwide have been purchasing gold amid rising inflation and economic uncertainty. In the 2023-24 fiscal year, the RBI added 27.47 tonnes of gold to its reserves, raising its total stock to 822.10 tonnes, up from 794.63 tonnes the previous year.

Breakdown of India’s Gold Reserves

Out of India’s total gold reserves, 309.03 tonnes are held as backing for the notes issued in the country. Additionally, the RBI holds 514.07 tonnes of gold (including gold deposits) as part of its banking assets, some of which are stored overseas. In a significant move, the RBI repatriated over 100 tonnes of gold from the UK, a transaction that was last seen on such a scale in 1991. More similar repatriations are expected in the coming months for logistical reasons and to diversify storage.