India's Gold Imports Soar 28.73% to $69 Billion; Switzerland Leads Suppliers

• India's gold imports surged by 28.73% to $69 billion from April to February 2025-26, up from $53.52 billion in the previous year.
• The increase in gold imports contributed to a rise in the trade deficit to $310.60 billion, compared to $261.80 billion last year.
• Switzerland is the largest source, accounting for 40% of India's gold imports, followed by UAE (16%) and South Africa (10%).
• India is the world's second-largest gold consumer after China, with imports primarily driven by the jewelry industry.
• Silver imports also saw a significant increase of 142.87% to $11.43 billion, used in electronics, automotive, and pharmaceutical sectors.

Key Questions Answered

How do gold imports affect the Indian economy?

Rising gold imports have increased India's trade deficit and drained foreign exchange reserves. This has led to RBI intervention and tightened liquidity.

What is the government doing to control imports?

The government has imposed import curbs on all articles of gold, silver, and platinum to check the misuse of free trade agreements and to curb the trade deficit and save foreign exchange {{