In June 2025, the Reserve Bank of India (RBI) added around half a tonne of gold to its foreign exchange reserves, continuing a trend that’s been quietly building over the past few years. This may not make major headlines, but it’s a move worth noting.
Gold has become the fastest-growing component of India’s forex reserves, which also include foreign currency assets, Special Drawing Rights (SDRs), and the IMF reserve position. With global economic uncertainty and rising geopolitical tensions, central banks around the world are leaning more towards gold as a safe and reliable asset—and India’s central bank is no exception.
According to RBI data, India’s total gold reserves now stand at over 825 tonnes. This recent addition in June shows the RBI’s long-term strategy of gradually increasing gold holdings to balance risks associated with currency fluctuations and volatile global markets.
Why gold? It’s simple. Gold holds its value over time and isn’t tied to the performance of any particular economy. As the U.S. dollar and other major currencies face inflation pressures, holding more gold helps maintain the stability of the country’s reserves.
Experts believe that this measured buying approach by the RBI is smart. It doesn’t disrupt the market and also helps build long-term financial resilience. While gold doesn’t earn interest like bonds, its role as a strategic asset is clear, especially during uncertain times.
This might not directly affect everyday people, but it does contribute to the broader economic stability we all depend on.