Our Bureau
New Delhi
India’s recent repatriation of 100 tonnes of gold from the UK marks a significant milestone, being the largest transfer since 1991. This move, orchestrated by the Reserve Bank of India (RBI), reflects a strategic shift in gold storage aimed at enhancing economic security and reducing foreign storage costs.
For decades, India has stored a substantial portion of its gold reserves abroad, particularly with the Bank of England, which has served as a safe repository since before independence. The RBI held 413.8 tonnes overseas as of March 2024, out of a total reserve of 822.1 tonnes. This repatriation is not merely logistical; it symbolizes a renewed confidence in India’s economic stability, contrasting sharply with the 1991 balance of payments crisis that forced the country to pledge gold for loans.
Storing gold abroad incurs significant costs, including security and storage fees. By relocating this asset, the RBI aims to minimize these expenses. Recent geopolitical tensions have underscored the risks associated with holding assets overseas. The move enhances India’s control over its gold reserves amidst global uncertainties. With the repatriation of 100 tonnes, the gold reserves are now evenly distributed in India and abroad.
Executing this transfer required meticulous planning and coordination among various government agencies, including customs exemptions for the importation of gold. A special aircraft was utilized to ensure secure transport, highlighting the sensitivity and value of the cargo.
The RBI has indicated that more transfers could occur in the coming months as part of an ongoing review of its storage strategies. This proactive approach aligns with global trends where central banks are increasingly investing in gold as a hedge against economic volatility.
