India’s gold imports have fallen to a multi-decade low, reflecting subdued domestic demand, elevated global prices, and tighter supply dynamics, according to precious metals consultancy Metals Focus.
The sharp decline in imports comes as high bullion prices and volatile international markets continue to weigh on jewellery purchases and investment demand across the country. Industry analysts said consumers have remained cautious amid persistent price fluctuations, prompting lower buying activity from retailers and wholesalers.
Metals Focus noted that reduced inflows could tighten physical gold availability in the domestic market, potentially leading to higher premiums in the coming months if demand recovers during the festive and wedding season.
Traders said imports have also been impacted by currency movements and cautious inventory management by jewellers seeking to avoid exposure to price volatility. Some market participants are increasingly relying on recycled gold and existing inventories to meet near-term demand.
Despite the slowdown in imports, India remains one of the world’s largest gold consumers, with demand expected to revive gradually as seasonal purchases pick up later in the year. Analysts said any rebound in domestic consumption, combined with lower import volumes, could place upward pressure on local premiums.