New Delhi: The Reserve Bank of India, as on March 31 this year, held 879.58 metric tonnes of gold as compared to 822.10 metric tonnes as on March 31, 2024, reflecting an increase of 57.48 metric tonnes, the Parliament was informed on Monday.

These gold holdings contribute to strengthening confidence in the Indian rupee and the overall external stability of the economy, Minister of State for Finance Pankaj Chaudhary told the Lok Sabha in a reply to a question.

To questions about the surge in gold and silver prices in the domestic market, he said that domestic prices of precious metals like gold and silver are primarily determined by their prevailing international prices (in US dollar terms), the exchange rate of the Indian rupee against the US dollar and applicable tariffs.

The recent surge in prices is largely attributable to heightened geopolitical tensions and uncertainty over global growth, which have boosted safe-haven demand, including substantial gold purchases by central banks and major institutions worldwide.

The minister said that the recent rally in gold prices may have differential effects across states or population groups, depending upon the degree of socio-cultural and economic reliance on these precious metals.

“They serve a dual role — not only as a consumption item but also as an investment avenue, as they are considered safe assets for hedging against uncertainties,” he said.

Thus, an increase in the price of gold or silver positively influences household wealth, as the notional value of existing gold or silver holdings appreciates, he added. Chaudhary further stated that the prices of precious metals are determined by the market, and the government is not involved in the price fixation.

However, the government, as a relief measure for consumers, lowered customs duty on gold imports from 15 to 6 per cent in July 2024.

The government introduced measures such as the Gold Monetisation Scheme (GMS), Gold exchange‑traded funds (ETFs) and Sovereign Gold Bond Scheme to reduce the demand for physical gold and to mobilise idle domestic gold, so that part of the demand is met from local stocks rather than fresh imports, thereby reducing external vulnerability and price pressures.

“The RBI and government regulation of bullion imports through nominated agencies, banks and refineries improve traceability, reduce grey‑market channels and help domestic prices more smoothly track global benchmarks rather than react to shortages or speculative spikes,” the minister said.

Finance Minister Nirmala Sitharaman on Monday cited India’s strong growth and sovereign rating upgrades to counter claims that the country was a “dead economy”, telling the Lok Sabha that such upgrades would not have been possible if the economy were weak, PTI reported.Responding to Opposition members who sought the government’s reaction to US President Donald Trump’s description of India as a “dead economy”, Sitharaman said India remains the fastest-growing major economy, recording 8.2% growth in the September quarter.“The economy in the last 10 years has transitioned from external vulnerability to external resilience,” the minister said while replying to the Supplementary Demands for Grants for 2025-26 in the House.“Every institution is raising our growth outlook for this year and the forthcoming year. There are clear expressions (from the IMF) recognising India’s growth and no dead economy gets a credit rating upgrade by DBRS, S&P and R&I,” Sitharaman said.Trump had made the “dead economy” remark in July while expressing disappointment with India’s decision to continue buying oil from Russia. Sitharaman said data and assessments by global institutions contradicted that characterisation.“The economy today has moved from fragility to fortitude,” she said.“So somebody said something somewhere, however important that somebody is, we should not depend on that but rely on data available within the country and also data coming from elsewhere. Rely on data,” she told Opposition members.“Can a dead economy grow at 8.2%? Can a dead economy get credit rating upgrades?” Sitharaman asked.The Reserve Bank of India last week raised its GDP growth projection for FY26 to 7.3% from 6.8% earlier. India grew 8.2% in the September quarter and 7.8% in the June quarter.On concerns raised over the International Monetary Fund’s assessment of India’s national accounts — including Gross Domestic Product (GDP) and Gross Value Added (GVA) — Sitharaman said India’s overall grading remains unchanged at the median rating of ‘B’.She said the IMF had flagged the outdated base year for national accounts and suggested rebasing. “So to say that there has been a downgrade by IMF is misleading the House. For this year, IMF gave B for overall statistics,” she said, adding that India has remained the fastest-growing major economy for the fourth consecutive year despite the pandemic.Sitharaman also addressed concerns over public debt, saying India’s debt-to-GDP ratio rose to 61.4% after Covid but was brought down to 57.1% by 2023-24 due to policy measures taken by the central government.“By this year-end, I expect it to come down to 56.1%,” the finance minister said.

The federal government has reduced the price of high-speed diesel by Rs14 per litre for the next 15 days, while keeping petrol prices unchanged, according to a notification issued by the Petroleum Division late Monday night.

Under the revised prices, the new rate of high-speed diesel has been fixed at Rs265.65 per litre. Petrol will continue to be sold at Rs263.45 per litre. The Petroleum Division said the changes will take effect from midnight and remain applicable for the next fortnight.

The notification marks a significant reduction in diesel prices, which is expected to provide some relief to the transport and agriculture sectors. However, motorists using petrol will see no change in fuel costs during the period.

On November 30, the government had also reduced fuel prices by up to Rs4.79 per litre for the fortnight ending December 15. According to a notification issued by the Petroleum Division, petrol was reduced by Rs2 to Rs263.45 per litre, while high-speed diesel saw a cut of Rs4.79 to Rs279.65 per litre.

High-speed diesel is extensively used in the transport and agriculture sectors, meaning reductions have a wide economic impact. Petrol, primarily used in motorbikes and cars, is most consumed in Punjab due to restrictions on the use of indigenous gas at CNG stations.

Fuel prices in Pakistan are reviewed every 15 days, in line with global oil market trends and domestic fiscal considerations.