Overview of Gold in Forex Reserves#
As of the end of March 2026, gold accounted for 16.7% of India's foreign exchange reserves, a notable increase from 13.92% in September 2025. This information comes from the Reserve Bank of India's (RBI) recent half-yearly reserves management report.
Reasons for the Increase#
The rise in gold's share is attributed to its increasing value within India's reserves, even as the overall foreign exchange reserves saw a slight decline during the same period. Specifically, India's total foreign exchange reserves decreased from $700.09 billion to $691.11 billion.
Domestic Gold Holdings#
Data from the RBI indicates that over two-thirds of India's gold reserves are now stored domestically. As of March 2026, the RBI held 880.52 metric tonnes of gold, with 680.05 metric tonnes kept within the country. This marks a significant shift, as less than half of India's gold reserves were held domestically just two years prior.
Broader Trends in Central Banking#
The increase in gold's share in India's reserves reflects a wider trend among central banks globally, where many are increasing their gold allocations. This strategy is often employed to diversify reserves and reduce reliance on other currencies.