Reserve Bank of India's post-Covid gold addition second highest globally

The Reserve Bank of India (RBI) has added more gold to its reserves since the pandemic than any other central bank barring China’s.

 

The RBI added 244 tonnes in five years, from 2020 to 2024, shows the data from the World Gold Council. China added 336 tonnes over this period. 

The pace continues for India even as some others have slowed. It was the second-biggest buyer of gold in the last quarter of 2024 (22.54 tonnes). China was lower (15.24 tonnes), and Singapore cut gold holdings by 7.65 tonnes. 

Poland came on top with an addition of 28.53 tonnes. 

The latest numbers from the RBI show it added roughly 3 tonnes in 2025, taking its gold reserves to 879 tonnes as of January 31, 2025. 

Sanctions against Russia following military action in Ukraine caused many central banks to re-examine their vulnerability to similar economic action, noted Anil Bhansali, head of treasury, Finrex Treasury Advisors. China and India were among the most aggressive in their additions. Individual central banks may take their own decisions on the optimum level of gold but there is the possibility of a higher share of gold in India’s forex (FX) reserves, according to Bhansali. 

Further additions by global central banks could also depend on price action in gold. 

Central-bank buying might slow a bit,” he said. 

 

Central banks in emerging markets have seen a significant increase in the share of gold they hold. Brics — Brazil, Russia, India, China, and South Africa — have collectively added nearly 700 tonnes in the past five years. Of that India accounts for more than a third. 

Russia was more aggressive in the years leading up to 2019. It alone added over 1,622 tonnes between 2010 and 2019. It attacked Ukraine in February 2022, leading to economic sanctions. 

The RBI has been adding to its gold reserves after 2017, adding, on average, over 45 tonnes a year since then as against less than 0.5 tonnes over the preceding seven years. Its last major gold purchase preceding this was in 2009, when it picked up 200 tonnes from the International Monetary Fund (IMF). 

Sreejith Balasubramanian, economist at Bandhan Mutual Fund, said considerations could extend beyond diversification.

it could also be tactical and, moreover, prudent risk management where the RBI manages/balances various risks from currency, domestic and global interest rates, gold price, concentration, credit, etc. Considerations about geopolitics and inflation could be factors as well,” said Sreejith Balasubramanian, economist, Bandhan Mutual Fund. 

The share of reserves entered double digits in 2024 and is currently at 11.6 per cent even as gold prices remain elevated compared to recent years. 

US President Donald Trump had threatened the BRICS nations with tariffs over any attempts to move away from the dollar.

Union Finance Minister Nirmala Sitharaman, in response to a question in Parliament, said: “Gold is also kept (with) the Reserve Bank and it is also being bought by the Reserve Bank. But beyond that, as regards an international currency or potential currency, there is not much for me to comment at this stage.” 

The government has separately clarified there is no such policy in place in response to a question during a media briefing.

“As for the question of the dollar and de-dollarisation, which you mentioned, our external affairs minister has clearly stated that we do not have any such strategy or policy in place,” said Randhir Jaiswal, official spokesperson of the Ministry of External Affairs.