India’s gold imports fell 81.27% year-on-year to $1.8 billion in September, declining for the second consecutive month, according to the Commerce Ministry’s monthly trade data released on October 15, 2026.
Silver imports also contracted for the second consecutive month, falling 49.11% year-on-year to $665.08 million to $665.08 million, the ministry’s data showed.
The decline comes after the government raised the import duty on precious metals from 6% to 15%, effective May 13.
Prime Minister Narendra Modi has also urged people to defer gold purchases amid the West Asia crisis and the disruptions associated with it, according to the report.
How much have gold and silver imports fallen?
During April-September 2026-27, gold imports declined 27.32% year-on-year to $19.27 billion. Silver imports fell 25.17% to $2.4 billion during the same period.
The data showed that gold and silver were among the commodities that recorded a decline in import value in September.
Why does the decline in gold imports matter?
Gold accounts for more than 5% of India’s total imports, according to the report. India is the world’s second-largest gold consumer after China, and imports primarily meet demand from the domestic jewellery industry.
Gold imports contribute to India’s merchandise trade deficit, which is the difference between the value of goods imported and exported. A decline in imports can reduce the import bill, all else being equal, although the overall trade balance also depends on exports and other imports.
Gold imports also affect the country’s current account deficit (CAD), which captures the balance of trade in goods and services, income and transfers with the rest of the world.
Which countries are India’s biggest gold suppliers?
Switzerland accounted for about 40% of India’s gold imports, making it the largest source, followed by the United Arab Emirates at more than 16% and South Africa at about 10%.
India’s total imports from Switzerland fell 74.63% year-on-year to $893.2 million in September, according to the data.
Will lower imports mean cheaper gold for consumers?
Not necessarily. A decline in gold import value does not, by itself, indicate that domestic gold prices will fall.
Retail gold prices are influenced by international prices, the rupee-dollar exchange rate, import duties and other applicable costs. The increase in customs duty from 6% to 15% raises the duty burden on imports, while changes in global prices and currency movements can also affect domestic prices.
-With agencies inputs