India’s gold imports surged even as prices hit all-time highs, increasing pressure on the country’s trade balance, according to the Economic Survey 2025–26.
The Survey noted that strong domestic demand for jewellery and investment purposes has kept gold inflows elevated, contributing to a wider trade deficit despite efforts to curb non-essential imports. High global prices have amplified the cost of imports, putting additional strain on foreign exchange reserves.
Analysts said that while gold remains a key store of value for households, the rising import bill highlights the need for balanced trade policies and diversification of export revenues to offset the impact on the current account. The Survey also recommended measures to strengthen gold recycling and domestic sourcing, alongside policies to encourage other investment avenues.
Despite the surge in gold imports, the Survey emphasised that India’s overall external sector remains resilient, supported by strong services exports, remittances and foreign inflows.