India’s Gold imports surged sharply in April as rising bullion prices pushed the value of inbound shipments significantly higher.
Commerce Ministry data showed gold imports increased 81.69 percent year-on-year to USD 5.62 billion during the month. Silver imports also jumped 157.16 percent to USD 411 million.
Officials said higher global bullion prices contributed strongly to the rise in import values during the month.
Gold imports rise despite higher prices
India’s Gold imports reached an all-time high of USD 71.98 billion during 2025-26. However, import volumes declined 4.76 percent to 721.03 tonnes during the fiscal year.
The government recently increased customs duty on precious metals from 6 percent to 15 percent. The revised duty became effective from May 13.
Commerce Secretary Rajesh Agrawal said the higher import duty could reduce imports over the coming months. He said authorities would closely monitor the impact of the revised duty structure.
Officials believe the higher duty may reduce consumption-linked demand for gold and silver in the domestic market.
Silver imports remain strong
Silver imports also recorded strong growth during the last fiscal year. Imports increased nearly 150 percent to USD 12 billion during 2025-26.
Import volumes of silver rose 42 percent to 7,334.96 tonnes during the year. Officials said industrial demand continued supporting silver imports despite higher prices.
Unlike gold, silver has wider industrial applications across electronics, renewable energy and manufacturing sectors. This could limit the impact of higher import duties on silver demand.
UAE gold imports remain limited under CEPA
Officials clarified that concessional imports from the United Arab Emirates under the India-UAE Comprehensive Economic Partnership Agreement had limited impact on overall trade.
Under the agreement, India allows gold bullion imports through a Tariff Rate Quota mechanism at concessional duty rates.
However, the government said actual imports under the mechanism remained relatively small. Authorities allocated around 8.58 tonnes under the quota during 2025-26, but actual imports remained close to one tonne.
Officials added that the UAE’s share in India’s gold imports declined despite higher global bullion prices.
Switzerland remains top supplier
Switzerland continued as India’s largest gold import source with nearly 40 percent share. The UAE accounted for over 16 percent while South Africa contributed around 10 percent.
Imports from Switzerland rose 26.73 percent to USD 1.47 billion during April.
India remains the world’s second-largest gold consumer after China. The jewellery industry accounts for a major share of domestic demand for precious metals.
Gold imports widen trade deficit concerns
The rise in Gold imports also increased pressure on India’s trade deficit during April. The country’s trade deficit widened to a three-month high of USD 28.38 billion during the month.
Economists often track bullion imports closely because they influence India’s current account deficit and foreign exchange outflows. The Reserve Bank of India had earlier said the country’s current account deficit widened mainly due to a higher trade gap and weaker exports.
The government has imposed higher duties and import curbs on precious metals to reduce non-essential imports and support the rupee. Analysts believe the higher duty structure could gradually moderate Gold imports if domestic prices remain elevated over the coming months.
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