India’s gold imports declined by over 27 per cent to USD 19.27 billion during April–September 2026, compared to USD 26.51 billion in the same period last year, according to data presented by the Ministry of Commerce and Industry on Thursday.
The decline comes after the government increased import duty on gold and silver from 6 per cent to 15 per cent in May this year, making imports more expensive.
The sharp fall in gold imports is significant as India relies heavily on overseas purchases to meet domestic demand. Lower gold imports can help ease pressure on the country’s merchandise trade deficit.
The government raised customs duty on gold and silver with effect from May 13, 2026, as part of measures to moderate precious metal imports amid pressure on the rupee and foreign exchange reserves.
According to the World Gold Council, the higher duty and tighter import regulations were expected to weigh on domestic gold demand during 2026.
September sees decline in precious metal imports
The Commerce Ministry’s presentation also highlighted a sharp decline in gold imports during September, alongside a reduction in silver imports, both for the month and on a cumulative basis.
Merchandise exports rise, trade deficit narrows
The fall in precious metal imports comes even as India’s overall merchandise imports rose to USD 74.61 billion in September, compared to USD 69.08 billion in the same month last year.
Meanwhile, merchandise exports increased by 23.04 per cent to USD 44.40 billion, helping narrow the merchandise trade deficit to USD 30.21 billion from USD 33 billion a year earlier.
The decline in gold imports comes amid efforts to manage import demand, although the extent to which higher duties contributed to the fall remains unclear.