India’s foreign exchange reserves surge by $4.5 billion to cross $702 billion mark

India’s international change reserves rose by $4.5 billion to $702.3 billion for the week ended October 17, primarily pushed by a rise within the worth of gold reserves, in keeping with knowledge launched by the Reserve Financial institution of India (RBI) on Friday.

India’s gold reserves held by the RBI as a part of the nation’s international change reserves surged by $6.2 billion to surpass the $108.5 mark for the primary time on the again of a pointy rise within the value of the dear metallic and elevated purchases by the central financial institution.

International forex property, the biggest a part of the reserves, fell by $1.7 billion to $570.4 billion in the course of the week. These property are affected by modifications within the worth of currencies such because the euro, pound, and yen.

India’s reserve place with the Worldwide Financial Fund (IMF) declined by $30 million to $4.62 billion in the course of the week, RBI knowledge confirmed. The share of gold in India’s international change reserves has nearly doubled over the previous decade – from under 7 per cent to just about 15 per cent – reflecting each regular central financial institution accumulation and a surge in international bullion costs.

That is the best proportion of gold within the nation’s whole reserves since 1996-97, in keeping with market analysts.

Gold costs have shot up by as a lot as 65 per cent in 2025 as a result of elevated demand for the dear metallic as a protected haven asset amid rising geopolitical uncertainty within the Center East and the commerce wars triggered by the US tariff hikes.

Central banks worldwide have gathered substantial quantities of gold as a safe-haven asset of their international change reserves amid uncertainty created by geopolitical tensions. The share of gold maintained by the Reserve Financial institution of India as a part of its international change reserves has nearly doubled since 2021.

The RBI has added roughly 75 tonnes to its gold reserves since 2024, bringing its whole holdings to 880 tonnes, which now represent about 14 per cent of India’s whole international change reserves, in keeping with a Morgan Stanley report.

India is the world’s second-largest shopper of gold, subsequent solely to China and depends on imports to fulfill demand. Shopping for gold is deeply rooted in Indian tradition and is utilized in massive portions within the type of jewelry items for the bride and bridegroom throughout marriage ceremony ceremonies. It additionally constitutes an essential channel of safe-haven funding and a standing image for households and people.