India’s Gold Imports Jump 29% To $69 Billion In FY26

India’s gold imports increased by 28.73% to $69 billion during April–February FY26, compared with $53.52 billion in the same period last year. The rise came mainly due to higher gold prices and strong demand from the jewellery sector.

India remains the world’s second-largest gold consumer after China.

Impact on Trade Deficit

The increase in gold imports pushed India’s trade deficit to $310.6 billion during the 11-month period, up from $261.8 billion a year earlier.

Gold alone makes up over 5% of India’s total imports, which means large purchases can significantly affect the country’s external balance.

Gold Prices Stay High

Gold prices in the national capital are hovering around ₹1,51,500 per 10 grams (including taxes). Higher prices increased the total value of imports.

Where India Imports Gold From

India imports most of its gold from a few countries:

• Switzerland – about 40% share
• United Arab Emirates – over 16% share
• South Africa – around 10% share

Imports from Switzerland alone rose 11.57% to $23.5 billion, while February imports from the country jumped sharply year-on-year.

Current Account Deficit Update

According to the Reserve Bank of India, the current account deficit (CAD):

• Rose to $13.2 billion (1.3% of GDP) in the December quarter
• However, fell to $30.1 billion (1% of GDP) for April–December FY26 compared with the previous year

A higher trade deficit due to imports like gold contributes to the CAD.

Also Read: Gold ETFs with Low Tracking Error - February 2026!

Silver Imports Surge Too

Silver imports increased sharply by 142.87% to $11.43 billion. Silver is widely used in industries such as electronics, automobiles and pharmaceuticals.

Government Steps to Reduce Imports

To control rising imports, the government has imposed import curbs on gold, silver and platinum articles.

Conclusion

India’s gold imports surged due to strong jewellery demand and high prices, putting pressure on the trade deficit. Government restrictions aim to control imports and manage the country’s external balance.

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