India's $2.4 trillion gold stash outshines global central banks
India's cultural and economic fascination with gold has turned the country into the world's largest private gold vault.
Households, including religious institutions like temples, collectively hold an estimated 25,000 tonnes of gold, valued at approximately $2.4 trillion at current market prices, according to the World Gold Council (WGC). This massive stockpile equates to nearly 56 per cent of India's projected nominal GDP for FY26, underlining the metal's central role in the nation's financial ecosystem.
A recent report by HSBC reveals that Indian household gold reserves have surpassed the combined official gold holdings of the world's top 10 central banks — including the US, Germany, Italy, France, Russia, China, Switzerland, Japan, Turkiye, and India itself. While these central banks hold strategic reserves as part of their monetary policy frameworks, Indian families have long embraced gold as a personal hedge against inflation, economic instability, and currency depreciation.
India ranks second globally in annual gold consumption, just behind China, and consistently imports between 700 and 900 tonnes of gold each year. In 2023 alone, India imported over 800 tonnes of gold, significantly contributing to the country's current account deficit. Despite its negative impact on trade balances, gold continues to be seen as a safe, inflation-resistant store of value, especially in rural and semi-urban households where access to formal banking remains limited.
'As the world increasingly turns to gold amid geopolitical tensions and inflation fears, India's quiet gold hoarding may offer both a challenge and an opportunity — a symbol of trust in tradition and a vast untapped reserve in the global financial landscape,' JK Bhaskar, a Dubai-based precious metal analyst, said.
Gold is also deeply embedded in Indian social and religious customs. From weddings and festivals to donations in temples and religious trusts, the demand for gold remains culturally robust. The Tirumala Tirupati Devasthanams (TTD), Shirdi Sai Baba temple, and Padmanabhaswamy Temple are among India's largest institutional gold holders, with combined assets running into several hundred tonnes. Much of this gold remains idle or locked in vaults, although various schemes have been introduced by the government to monetise these holdings.
In recent years, the Reserve Bank of India (RBI) has been steadily expanding its own gold reserves, in line with a global trend among central banks diversifying away from US dollar-denominated assets. RBI's gold reserves currently stand at around 820 tonnes, reflecting a 14 per cent increase over the past three years. Analysts see this as a prudent move to bolster financial stability amid global economic uncertainty and de-dollarisation trends.
While successive Indian governments have attempted to reduce gold imports through higher duties and gold monetisation schemes, the metal remains deeply entrenched in household balance sheets. With gold prices hovering near all-time highs, many see the asset not just as jewellery or tradition, but as a strategic long-term investment.
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