India has finally decided to stop storing its gold abroad and has begun a large-scale repatriation of its metal reserves. Currently, the Reserve Bank of India keeps over 65% of its gold reserves within the country, almost double the amount from four years ago. In the current financial year, which began in April, the RBI has already repatriated around 64 tons of gold, marking what might be called a “gold marathon.”
In light of Western nations freezing Russia's reserves following the onset of conflict, India has opted to keep its gold at home in Mumbai and Nagpur instead of leaving it in foreign hands. As Gaurav Kapoor, chief economist at IndusInd Bank, stated, if there is a suitable place for storage, it makes sense to keep the gold close.
India's total gold reserves now stand at a record 880 tons, with 576 tons stored domestically. Meanwhile, the country’s total foreign exchange reserves have reached an impressive $702.3 billion, ample enough to cover over 11 months of imports.
