India sees 40 percent increase in domestic gold reserves in last 5 years: RBI data

Official data from the Reserve Bank of India (RBI) showed that India witnessed a massive increase in its gold reserves in the last five years. The data showed that the country's gold reserves increased by 40 percent between March 2019 and March 2024.

The banking regulator's semi-annual foreign exchange management report released on Monday said total gold reserves rose 34 percent in the five-year period, Business Standard reported.

According to the data, total gold reserves at the end of March 2024 stood at 822 tons, while domestically held reserves reached 408 tons. In comparison, total gold reserves at the end of March 2019 were 612 tonnes, and domestic reserves were 292 tonnes during the period.

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The data showed that gold accounted for 7.37 percent of total foreign exchange reserves at the end of September 2023, while the share of the precious metal in total reserves increased to 8.15 percent at the end of March 2024.

The country's balance of payments-based foreign exchange reserve coverage for imports increased to 11 months at the end of March 2024, up from 10.2 months at the end of September 2023. At the end of March 2023, the import coverage stood at 9.3 months.

Import coverage represents the number of months of imports that can be maintained with the foreign exchange reserves available at the country's central bank. This is an important indicator for measuring the strength and economic stability of the national currency.

At the end of March 2024, the currency reached $641 billion, rising from $578 billion at the end of the same period a year earlier, according to the report.

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

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