Gold Imports Rise by Nearly 29% to $69 Bn in Apr-Feb 2025-26

Why It Matters

The spike deepens India’s trade and current‑account gaps, pressuring the rupee and prompting policy curbs on precious‑metal inflows. It signals heightened vulnerability for an economy heavily reliant on jewelry demand.

Key Takeaways

• Gold imports hit $69 bn, up 28.7% YoY
• Trade deficit widened to $310.6 bn, reflecting higher imports
• Switzerland supplies 40% of India’s gold imports
• Gold price ~₹151,500/10 g (~$1,825)
• Government imposed new curbs on precious‑metal imports

Pulse Analysis

India’s appetite for gold remains culturally entrenched, making it the world’s second‑largest consumer after China. Elevated global spot prices, driven by geopolitical uncertainty and supply constraints, have translated into a domestic price of roughly $1,825 for 10 grams. This price pressure, combined with robust demand from the jewelry sector, propelled import bills to $69 billion, a near‑30% year‑on‑year jump that now represents over five percent of total national imports.

The surge in gold inflows has a cascading effect on macroeconomic balances. A widening trade deficit of $310.6 billion feeds directly into a larger current‑account deficit, which, despite a modest quarterly improvement, still hovers around 1% of GDP. The Reserve Bank of India faces tighter foreign‑exchange dynamics, and policymakers have responded with import curbs on gold, silver and platinum to temper the outflow of hard currency. These measures aim to protect the rupee’s stability while the government evaluates longer‑term strategies such as encouraging domestic recycling and reducing reliance on high‑value imports.

Looking ahead, the trajectory of India’s precious‑metal market will hinge on price volatility and regulatory actions. While the new curbs may dampen short‑term import growth, they could also spur a shift toward alternative assets like digital gold or increased domestic refining capacity. The parallel surge in silver imports underscores broader demand for industrial metals, suggesting that any policy framework must balance jewelry consumption with the needs of sectors like electronics and automotive. Investors and industry players will watch closely how these dynamics shape India’s trade balance and currency outlook over the coming fiscal year.