Domestically held gold reserve rise by 40% in 5 years, shows RBI data

India's gold reserve, held domestically, surged by 40 per cent between March 2019 and March 2024, latest data released by the Reserve Bank of India showed. Total gold reserves saw an uptick of 34 per cent during the same period.

As of the end of March 2024, the Reserve Bank of India held a total of 822 metric tonnes of gold, with 408 metric tonnes held within the country. The total gold reserve stood at 612 metric tonnes as at the end of March 2019, out of which 292 metric tonnes were held domestically.

According to the half-yearly report on foreign exchange management released on Monday, the share of gold in total foreign exchange reserves increased from 7.37 per cent as at the end of September 2023 to 8.15 per cent as at the end of March 2024.

India’s foreign exchange reserves cover of imports (on balance of payments basis) increased to 11 months as of the end of March 2024 from 10.2 months at the end of September 2023. At the end of March 2023, the import cover stood at 9.3 months.

Import cover is a key trade indicator reflecting reserve adequacy, which strengthened alongside the increase in foreign exchange reserves. By the end of March 2024, foreign exchange reserves reached $641 billion, up from $578 billion at the end of March 2023.

The proportion of short-term debt (with original maturity) to reserves declined from 22 per cent in September 2023 to 20.3 per cent by December 2023. Similarly, the ratio of volatile capital flows (comprising cumulative portfolio inflows and outstanding short-term debt) to reserves decreased from 73 per cent in September 2023 to 70.4 per cent by December 2023.

Excluding valuation effects, foreign exchange reserves increased by $32.9 billion during April to December 2023 compared to a decrease of $14.7 billion during April to December 2022. Foreign exchange reserves in nominal terms (including valuation effects) increased by $44 billion during April to December 2023 as against a decrease of $44.6 billion in the corresponding period of the preceding year. Between the end of December 2022 and the end of December 2023, external assets grew by $97.9 billion, while external liabilities expanded by $95.1 billion.