Gold prices in India are not decided at the behest of any one person, company or central government. The responsibility of determining the official price of gold in the country on a daily basis rests with ‘India Bullion and Jewelers Association’ (IBJA).

India Gold Reserves: At a time when global tensions, wars, sanctions and economic uncertainty are reshaping financial strategies around the world, gold has once again become an essential shield for national economies. India maintains one of the world’s largest official reserves of gold through the Reserve Bank of India. But in 2025, RBI has significantly reduced the purchase of new gold. In the meantime, let us know how much gold reserves India has and what is its value.

India’s total gold reserves

India’s official gold reserves are approximately 880.18 metric tons. In terms of value, the price of this gold is estimated to be around 113.32 billion dollars. This price in Indian currency is more than Rs 9.5 lakh crore. This makes gold one of the most precious assets in the country’s treasury.

Increasing share of gold in India’s foreign exchange reserves

Gold has played a major role in India’s total foreign exchange reserves. Now its share has become 16.02% of the total forex reserves. Its value is approximately 687 billion dollars. This is the highest share of gold in the last two decades. The move signals India’s intention to reduce over-dependence on the US dollar and protect its reserves from global financial shocks, sanctions and currency stability.

Where does India keep its gold

In the last few years, India has paid a lot of attention to bringing its gold back home. At present about 510 to 575 tonnes of gold is kept safely inside India. This gold is kept mainly in the safes of RBI located in Mumbai and Nagpur. The remaining approximately 290 tonnes of gold is kept abroad with trusted institutions like the Bank of England and the Bank for International Settlements.

In the last three years alone, India has brought back about 274 tonnes of gold. This step has been taken due to geopolitical risks, global sanctions and the need for direct control over strategic national assets.

huge decline in shopping

There has been a huge decline in RBI’s gold purchases in 2025. While RBI had bought 72.6 tonnes of gold in 2024, it bought only 4.02 tonnes in 2025. This purchase was the lowest in 8 years.

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The Reserve Bank said that the country’s gold reserve has also increased during the week ended August 29, which has increased by $ 1.766 billion to $ 86.769 billion. The Reserve Bank also stated that during this period special drawing rights or special drawing rights have also increased by $ 4 million to $ 18.775 billion. According to RBI data, India’s reserve position in the IMF has also increased by $ 1.8 million to $ 4.749 billion in the week under review.

RBI focus on gold reserve

This report about the country’s Forex Reserve came after the report that the trend of American Treasury Bills seems to be decreasing as RBI is increasing the holding of gold to increase India’s foreign exchange reserves.

According to recent data from the US Treasury Department and RBI, the Reserve Bank is focusing on increasing the gold reserve instead of American Treasury Bills to strengthen its foreign exchange holding. By June 27, 2025, the amount of gold in foreign exchange reserves reached 879.98 MT, which increased from 840.76 MT of June 28, 2024 to 879.98 MT by June 27, 2025.

Pakistan also increased forex reserve

Pakistan’s foreign exchange reserves have also increased in the week ended on August 29, 2025. According to data released by State Bank of Pakistan (SBP), Pakistan’s Forex Reserve rose to $ 19.65 billion by 29 August 2025 with a slight gain of $ 41.7 million or 0.21 %. The rise in the country’s foreign exchange reserves came due to SBP’s growth in its foreign exchange reserves, which increased by $ 28.2 million during the week and with this the State Bank of Pakistan reserves increased to $ 14.3 billion.

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