Gold Imports Soar 29% to USD 69 Billion in Apr-Feb, Fueling Trade Deficit

• India's gold imports surged by 28.73% to USD 69 billion during April-February 2025-26, driven by high prices.
• This increase in gold imports contributed to a wider trade deficit, reaching USD 310.60 billion in the 11-month period.
• Switzerland is the primary source of gold imports, accounting for about 40%, followed by UAE and South Africa.
• Gold accounts for over 5% of India's total imports, impacting the country's current account deficit (CAD).
• The government recently imposed import curbs on gold, silver, and platinum articles to discourage imports.

Key Questions Answered

Will gold prices continue to rise in India?

Gold prices in India are predicted to fluctuate, with some experts forecasting a rise by the end of 2026 and others suggesting a potential fall below ₹1 lakh per 10 grams by 2027.

How do gold imports affect India's economy?

Rising gold imports are draining India's foreign exchange reserves, prompting RBI intervention and liquidity tightening.

What are the new government import curbs on gold?

The government has imposed import curbs on all articles of gold, silver, and platinum.