India Accelerates Gold Repatriation Amid Global Risks

India is making significant strides in repatriating its gold reserves, with approximately 77% now held domestically. This shift is largely influenced by rising global risks, including geopolitical tensions and the freezing of foreign assets. The Reserve Bank of India's recent report highlights a substantial increase in gold holdings within the country, with a notable rise in the share of gold in foreign exchange reserves. As countries worldwide follow suit, India's actions reflect a broader trend of central banks prioritizing domestic gold storage for enhanced security. Explore the implications of this strategic move and its impact on India's financial landscape.

By Narendra Chaudhary May 2, 2026, 13:28 IST

India's Gold Repatriation Efforts

New Delhi: India is rapidly repatriating its gold stored abroad. According to a report from the Reserve Bank, approximately 77% of India's total gold reserves, which amount to 880.52 tons, is now held domestically, translating to around 680 tons. Meanwhile, 197.67 tons remain with the Bank of England and the Bank for International Settlements. In just six months, India has brought back 104.23 tons of gold.

As reported by Economic Times, this shift is attributed to increasing global risks, particularly following events like the Russia-Ukraine conflict and the freezing of Afghanistan's foreign reserves. Central banks are now viewing gold not merely as an asset but as a strategic safeguard. The share of gold in India's foreign exchange reserves has risen to 16.7%. Previously, holding gold in financial hubs like London and New York was considered secure and convenient.

Why was gold stored abroad?
Reasons for keeping gold overseas include:
1. Easier and quicker transactions for buying and selling gold.
2. Increased risks in the changing global environment.
3. Convenience in international transactions. However, gold or assets stored abroad can be frozen for political reasons.
4. Greater trust in foreign institutions.
5. Difficulty in accessing these assets during crises.

Current Status of Gold Reserves
According to the Reserve Bank's semi-annual report, the status of gold in India's foreign exchange reserves has changed as follows:
Domestic reserves have increased, with gold held within India rising from 575.8 metric tons to 680 metric tons.
In the past six months, the RBI has repatriated 104.2 metric tons of gold.
The amount of gold secured with the Bank of England and the Bank for International Settlements has decreased from 290.4 tons to 197.7 tons.

Share of Gold in Foreign Exchange Reserves
Due to a significant rise in gold prices and a decline in foreign currency assets, the value of gold in total foreign exchange reserves has increased substantially:
In September 2025, the value of gold was $97.4 billion, which surged to $115.4 billion by March 2026.
The share of gold in total currency reserves jumped from 13.9% to 16.7%.

Global Trends in Gold Repatriation
India is not alone in this trend; several countries are also repatriating their gold to mitigate foreign risks:
France: At the beginning of 2026, France brought back 129 tons of gold from the New York Federal Reserve to Paris.
Serbia: In July 2025, Serbia repatriated its entire gold reserve worth $6 billion.
Germany: Germany is considering the security of its 1,236 tons of gold stored in New York.
Global Trend: According to the World Gold Council, by 2025, 59% of central banks prefer to keep their gold within their own countries, up from 50% in 2020.