India Sees 40 Per Cent Surge In Domestic Gold Reserves In Last 5 Years: RBI Data

As of March 2024 end, the overall gold reserves stood at 822 metric tonne, while domestically held reserves touched 408 metric tonne, the data found

India witnessed a massive jump in its gold reserves in the last five years, official data from the Reserve Bank of India (RBI) revealed. The data showed that the country’s gold reserves soared 40 per cent between March 2019 and March 2024. 

The half-yearly report on foreign exchange management released by the banking regulator on Monday stated that overall gold reserves jumped 34 per cent during the five-year period, reported Business Standard.

As of March 2024 end, the overall gold reserves stood at 822 metric tonne, while domestically held reserves touched 408 metric tonne, the data found. In comparison, as of March 2019 end, the total gold reserves touched 612 metric tonne, and domestic reserves during the period stood at 292 metric tonne. 

The data revealed that gold accounted for 7.37 per cent of overall foreign exchange reserves as of September 2023 end, while the share of the precious metal in the overall reserves jumped to 8.15 per cent as of March 2024 end.

The country’s foreign exchange reserves cover of imports, based on balance of payments, climbed to 11 months as of March 2024 end, against 10.2 months clocked at the end of September 2023. In March 2023 end, the import cover stood at 9.3 months. 

Import cover represents the number of months of imports that can be sustained with the foreig exchange reserves available with the country’s central bank. This is an important indicator to measure the domestic currency’s strength and economic stability.

As of March 2024 end, the forex touched $641 billion, jumping from $578 billion at the end of the same period a year earlier, the report revealed.

The ratio of short-term debt, including original maturity, to reserves slipped from 22 per cent in September 2023 to 20.3 per cent in December 2023.