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Learn about the glorious history of gold reserves in India
Tekchandra Shastri: Joint Editor 9822550220
New Delhi. India’s glorious history of gold reserves dates back centuries, with the Kushans first issuing gold coins on a large scale. Currently, the Reserve Bank of India (RBI) manages the country’s gold reserves, which are used for various purposes such as maintaining a store of value, providing a safety net during foreign exchange crises, and stabilizing the Indian economy. In recent years, the RBI has increased its gold reserves in response to global uncertainties, including transferring some of its reserves from foreign vaults to domestic storage in India.
Historical Background
Gold has been an important part of Indian culture for centuries, used as religious ornaments and currency. During the Kushan period, the Kushans were the first rulers to issue large numbers of gold coins in India, around the first to third centuries AD.
After independence in 1991, India had to pledge a large portion of its gold reserves to deal with a foreign exchange crisis.
Today, the RBI manages its gold reserves, with some held in domestic vaults and some held abroad.
The current gold reserves are managed well. The RBI uses gold to stabilize monetary policy, diversify foreign exchange reserves, and hedge against inflation. The total amount of gold stored locally in India exceeds 308 metric tons, while 413.79 metric tons is held abroad.
Recent Activities The RBI has increased its gold reserves in recent years, including transferring over 100 tons of gold from the UK domestically in 2023-2024. This move was taken to mitigate geopolitical risks and increase control over gold reserves.
India’s gold reserves are likely to increase in the future due to increasing demand in the light of global economic uncertainties and geopolitical tensions. India is one of the largest gold buyers in the world, investing heavily in gold.
