Gold Imports Plunge 17% Amid Soaring Prices; What's Next for India?

• India's gold imports fell 17.3% (9.15 lakh kg to 7.57 lakh kg) over a decade, yet the import bill surged 69% to $58 billion due to global price hikes.
• Global factors like geopolitical tensions, economic uncertainty, and central bank demand are driving gold prices up, alongside local rupee-dollar rates and taxes.
• Government states gold prices are market-driven, not controlled by them, despite parliamentary queries on stabilization.
• Customs duty on gold imports was reduced from 15% to 6% in July 2024 to align domestic prices with international rates.
• Government promotes digital gold options (ETFs, SGBs, GMS) to reduce physical import reliance and bring idle gold into the financial system.

Why It Matters: India's gold imports dropped in volume but soared in value due to global prices; government promotes digital gold.