The country’s foreign exchange reserves now hold around 12.46% of the Reserve Bank of India’s (RBI) gold reserves, a 25% increase since 2021. Over the past three years, central banks have increased their gold reserves by more than 1,000 tons, which is consistent with global trends. The Reserve Bank of India’s gold exposure in its foreign exchange reserves increased from 5.87% in March 2021 to 11.7% in March 2025.
As of May 9, the RBI had 879.59 metric tons of gold, of which 348.62 metric tons were in safe custody with the Bank for International Settlements and the Bank of England, and 511.99 metric tons were held domestically.The RBI purchased 57.5 tons of gold in 2024.
Indians are allowed to acquire an unlimited amount of gold jewelry or ornaments as long as they purchase them from sources of stated income, such as inheritances. According to income tax regulations, decorations and jewelry that correspond to a person’s income record may be taken. Based on family traditions and practices, the search officer may choose not to seize any further gold found in the house.
Long-term investors may be able to take advantage of the recent decline in gold prices in India, but care should be used when focusing too much on any one investment opportunity. Gold as a hedge and portfolio diversifier, debt exposure for medium-term objectives, and equities exposure for long-term objectives are all essential components of a well-structured investment plan.
