India’s Gold Imports Hit Record USD 71.98 Billion in FY26 Amid Price Surge

India’s gold imports rose sharply in value during 2025‑26, even as import volumes declined. Commerce Ministry data showed that higher international prices were the primary driver behind the surge in import expenditure.

Silver imports also increased significantly during the year, adding to overall trade pressures. The rise in precious metal imports contributed to a higher trade deficit, with implications for external balances.

Gold Import Trends and Value Growth

Gold imports increased by 24% to an all‑time high of USD 71.98 billion in 2025‑26, compared with USD 58 billion in 2024‑25. The import bill had stood at USD 45.54 billion in 2023‑24 and USD 35 billion in 2022‑23, reflecting a steady upward trend in value terms.

However, in volume terms, gold imports declined by 4.76% to 721.03 tonnes from 757.09 tonnes in 2024‑25. The Commerce Ministry attributed the higher import value primarily to rising global gold prices.

Price Impact and Domestic Rates

According to official data, average gold prices increased from USD 76,617.48 per kg in FY25 to USD 99,825.38 per kg in FY26. This price rise offset the impact of lower import quantities and pushed overall import expenditure higher.

In the domestic market, gold prices were hovering around ₹1,56,000 per 10 grams in the national capital, inclusive of all taxes. Elevated prices also influenced consumer demand patterns and import dynamics throughout the year.

Silver Imports and Trade Deficit Effect

Silver imports saw a sharp increase of around 150% in value to USD 12 billion during 2025‑26. In volume terms, silver imports rose by about 42% to 7,334.96 tonnes during the year.

The combined rise in gold and silver imports contributed to India’s merchandise trade deficit reaching USD 333.2 billion in 2025‑26. Precious metals together accounted for more than 5% of the country’s total imports.

Import Sources and Current Account Context

Switzerland remained the largest source of India’s gold imports with a share of around 40%, followed by the UAE at over 16% and South Africa at about 10%. Total imports from Switzerland rose by 11.36% to USD 24.27 billion in 2025‑26.

India is the world’s second‑largest gold consumer after China, with imports largely meeting jewellery sector demand. Higher gold imports have implications for the current account deficit, which rose to USD 13.2 billion, or 1.3% of GDP, in the December quarter, according to RBI data released on March 2, 2026.

Read More: Gold Demand in India Remains Subdued Ahead of Akshaya Tritiya.

Conclusion

Gold import data for 2025‑26 highlights the significant impact of global price movements on India’s import bill. Despite lower volumes, higher prices resulted in record‑high import values for gold and silver.

These trends contributed to a wider trade deficit, even as the current account deficit moderated on a cumulative basis. The government has imposed import curbs on precious metals to discourage excessive inflows and manage external pressures.

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