RBI Buys Big: India Adds Huge 57.5 Tonnes of Gold to Its Reserves

Reserve Bank of India (RBI) made news headlines by adding a whopping 57.5 tonnes of gold to its coffers last year, its second-biggest annual gold acquisition in seven years. The aggressive buildup comes as the RBI is aiming to bolster its foreign exchange reserves in the face of climbing gold prices and worldwide financial insecurity.

 

Key Highlights:

 

RBI gold reserves have risen to 879.6 tonnes as of March 2025, accounting for 11.7% of India's overall forex reserves—the highest percentage ever. The worth of these reserves has risen to around $97 billion, with gold prices reaching an all-time high of $3,300 per ounce in April 2025.

 

The central bank was the second-largest gold purchaser in the world in 2024, adding 72.6 tonnes that year, and continued its run of purchases with 2.8 tonnes more during the first two months of 2025. This continues a pattern of steady gold buildup since 2017, as India hedges against global and currency risks.

 

The RBI gold purchases, although moderately toned down over the last few months, emphasize a strategic move towards diversification and risk hedging. The proportion of gold in Indian reserves has almost doubled since 2019 as confidence in gold as a safe-haven asset continues to increase.

 

India is now seventh in the world in gold reserves after the US, Germany, Italy, France, China, and Switzerland.

 

The RBI’s robust gold acquisition strategy highlights its proactive approach to safeguarding India’s financial stability in a turbulent global landscape.

 

Sources: World Gold Council, Economic Times, CNBC-TV18, The Hindu BusinessLine