India’s Gold Imports Plunge 57.75% to $2.3 Billion in August 2026; Silver Imports Rise 127%

India’s Gold Imports fell 57.75% to $2.3 billion in August 2026, according to The Economic Times news report citing data from the Commerce Ministry. The decline came after the government raised the import duty on precious metals. 

The import duty was increased from 6% to 15% with effect from May 13, 2026. The change was in place during August 2026, when gold imports recorded a sharp fall. 

Silver Imports Increase 

Silver Imports moved in the opposite direction during the month. Imports of the metal rose 127% to $1.02 billion in August 2026, the Commerce Ministry data showed. 

For April-August 2026-27, gold imports were still higher than in the same period of the previous financial year. Imports increased 3.38% to $17.47 billion during the five-month period. 

Silver imports, on the other hand, fell 8.81% to $1.74 billion between April and August. 

Switzerland as the Major Source 

Switzerland was the largest source of gold imported by India, accounting for about 40% of total imports. The UAE followed with a share of more than 16%, while South Africa accounted for around 10%. 

India’s total imports from Switzerland also declined in August. They fell 45.4% to $1.28 billion during the month. 

Gold Demand in India 

India is the second-largest gold consumer in the world after China. Gold imported into the country is mainly used to meet demand from the jewellery industry. 

The metal also forms a major part of India’s overall import bill. Gold accounts for more than 5% of the country’s total imports. 

Effect on External Trade 

Changes in gold imports have a bearing on India’s current account deficit (CAD). A fall in the value of gold brought into the country reduces the import bill, while higher imports add to it. 

August recorded a substantial fall in gold imports, although the April-August figure remained higher by 3.38% from the corresponding period. The data covers the period after the import duty increase announced in May. 

Read More: UPI Payments for Mutual Funds, Stocks to Attract 0.02% MDR From October 15, 2026! 

Conclusion  

India’s gold imports declined sharply in August to $2.3 billion. On a cumulative basis, imports rose 3.38% during April-August 2026-27. 

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