MUMBAI — India’s foreign exchange reserves climbed by $5.54 billion to $692.58 billion during the week ended November 14, driven primarily by a sharp rise in the value of the gold component, the Reserve Bank of India (RBI) said Friday.
Gold reserves surged by $5.34 billion to $106.86 billion, largely reflecting an upswing in global bullion prices. The RBI values its gold holdings based on international price movements, making the component highly sensitive to fluctuations in the global market.
Foreign Currency Assets (FCAs), the largest portion of India’s reserves, rose by $152 million to $562.29 billion. Special Drawing Rights (SDRs) increased by $56 million to $18.65 billion, while India’s reserve position with the IMF went up by $8 million to $4.78 billion.
RBI Governor Sanjay Malhotra recently said that India’s foreign exchange reserves are now sufficient to cover more than 11 months of goods imports and about 96 percent of outstanding external debt. “Overall, India’s external sector remains resilient as key external sector vulnerability indicators continue to improve. We remain confident of meeting our external financing requirements,” he said.
The share of gold in India’s total foreign exchange reserves has nearly doubled over the past decade — from below 7 percent to almost 15 percent — due to both consistent central bank purchases and a strong rise in global prices. Analysts say this is the highest proportion of gold in the country’s reserves since 1996–97.
Gold prices have increased by as much as 65 percent in 2025 amid intensifying geopolitical tensions in the Middle East and global trade friction triggered by U.S. tariff hikes. Central banks worldwide have been boosting their gold holdings as a safe-haven buffer against rising uncertainty.
The RBI has added roughly 75 tonnes of gold since 2024, taking its total holdings to around 880 tonnes — now about 14 percent of India’s total reserves, according to a Morgan Stanley report.
India remains the world’s second-largest consumer of gold after China and relies heavily on imports. Gold holds deep cultural significance in India, especially in weddings, and serves as both a symbol of status and a preferred safe-haven investment. (Source: IANS)
