India is increasing its gold reserves within the country as the Reserve Bank of India (RBI) continues to repatriate its holdings. This strategy coincides with a global trend where nations utilize financial sanctions and asset freezes for geopolitical leverage. Official statistics indicate that the RBI returned approximately 64 tonnes of gold to India in the first half of the current financial year. By the end of September, India’s total gold reserves reached 880.8 tonnes, with 575.8 tonnes stored in domestic vaults. The remainder includes 290.3 tonnes held by the Bank of England and the Bank for International Settlements, along with 14 tonnes in gold deposit arrangements.
Since March 2023, the RBI has repatriated 274 tonnes of gold from abroad, a process that started following the Russia-Ukraine conflict and the Taliban’s takeover of Afghanistan, which prompted G7 nations to freeze the foreign currency reserves of both nations.