Gold’s Rising Share in India’s Forex Reserve:
As per the World Gold Council (WGC), India’s gold share in foreign exchange reserves has nearly doubled from 6.7% in 2019 to 12% by February 2025.
- India’s forex reserves rose to USD 677.84 billion in April 2025, led by an increase of USD 892 million in FCA and a USD 638 million rise in gold reserves, while SDRs fell by USD 6 million.
- Forex are reserve assets held by a central bank in foreign currencies. It may include foreign currencies, bonds, treasury bills and other government securities, typically denominated in US dollars.
- They are an important component of the Balance of Payment (BoP)
- The RBI is the custodian of India’s foreign exchange reserves, deriving its authority from the provisions of the RBI Act, 1934.
