By Sahil Sharma: The joy of Dhanteras this year mingled seamlessly with the spirit of Choti Diwali, but this October 30 wasn’t only marked by the traditional purchases of gold, silver, and metal utensils. This Dhanteras, the government brought home something precious that would help in restoring the country’s financial legacy—102 tons of gold from the Bank of England, valued at nearly ₹7,000 crore.
This monumental move by the Reserve Bank of India (RBI) wasn’t merely symbolic; it represented a reclamation of resources pledged decades ago during one of India’s most difficult financial crises.
Across the nation, lights and lanterns marked the countdown to Diwali as Indians participated in the time-honored custom of buying gold and silver. This year, however, India’s buying power surged. Reports from the India Jewelers and Goldsmith Federation indicate that Dhanteras witnessed record-breaking gold purchases valued at ₹20,000 crore and silver purchases of ₹2,500 crore representing approximately 30 tons of gold and 250 tons of silver.
While citizens celebrated Dhanteras by bringing gold home, the government’s quiet “homecoming” of 102 tons of gold—secured under tight secrecy speaks volumes about India’s financial resilience and independence today, compared to 1991.
That year, India found itself teetering on the edge of a financial collapse, with foreign reserves barely sufficient for two weeks of imports. Inflation, the oil crisis, and a fiscal deficit of 99.4% had brought the country to its knees. It was a period marked by high foreign debt and political instability, and when international aid waned, India had no choice but to pledge its gold.
The turbulent 1991 crisis forced India’s leaders to pledge nearly 47 tons of gold to the Bank of England. This measure, though politically contentious, was a necessary sacrifice that ultimately propelled India toward economic reforms, opening doors for foreign investments and setting the foundation for today’s robust economy. Over the years, reforms introduced by Finance Minister Manmohan Singh under Prime Minister Narasimha Rao led to India’s recovery and, eventually, a steady increase in gold reserves.
RBI Governor Shaktikanta Das confirmed that India’s capacity to store gold has improved substantially. The return of gold to domestic vaults comes at a time when global financial and security tensions, including the recent seizure of Russian gold reserves, remind us of the prudence of holding resources within national borders.
Additionally, the RBI’s strategic acquisition of gold over dollar assets supports the rupee’s value in an increasingly uncertain global economic climate.
This time as the country celebrated the festival with hope, prosperity, and pride, we reflect on how far India has come. From being the “golden bird” that once pledged its gold for survival to a nation reclaiming its wealth and ensuring self-sufficiency, India’s journey is nothing short of remarkable. May the spirit of Diwali inspire us to continue this path of growth, security, and unity.