India’s gold imports rose sharply in February, reaching close to $5 billion as strong consumer demand and seasonal buying supported higher shipments of the precious metal into the country.
According to trade estimates, the surge in imports was largely driven by robust demand from the jewellery sector and stock replenishment by traders ahead of the wedding season. India remains one of the world’s largest consumers of gold, with imports playing a crucial role in meeting domestic demand.
Industry analysts said jewellers increased purchases to rebuild inventories after a relatively slower start to the year. The approach of major festivals and weddings also traditionally boosts gold buying across several regions of the country.
Higher imports, however, can widen India’s trade deficit since the country relies almost entirely on overseas supplies of gold. The government has periodically monitored gold inflows and adjusted import duties in the past to manage the impact on the current account balance.
Market participants expect demand to remain steady in the coming months, particularly as the wedding season and festive buying continue to support jewellery sales across India.