India’s gold import bill declined by 27.32% to US$19.27 billion during April–September 2026, compared with US$26.51 billion in the corresponding period last year, according to data released by the Ministry of Commerce and Industry.
The decline follows the government’s decision to increase the import duty on gold and silver from 6% to 15%, effective May 13, 2026. The higher duty has made overseas gold purchases more expensive, amid efforts to moderate precious metal imports and ease pressure on foreign exchange reserves.
India relies heavily on imported gold to meet domestic demand for jewellery, investment products and bullion. The reduction in imports could help moderate the country’s overall import bill, although the impact on the trade balance will depend on trends across other major import categories.
Gold imports fell sharply in September, reaching US$1.80 billion compared with US$9.61 billion in September 2025. The decline contributed to a reduction in precious metal imports during the month.
Despite the fall in gold imports, India’s overall merchandise imports increased to US$74.61 billion in September 2026, from US$69.08 billion a year earlier. Merchandise exports rose 23.04% to US$44.40 billion, while the monthly trade deficit narrowed to US$30.21 billion from US$33 billion in September 2025.
The coming months will show whether the decline in gold imports continues through the festive and wedding seasons, when domestic demand traditionally strengthens. Import duty levels, international gold prices and consumer buying