India’s gold imports contracted in August following a sharp increase in customs duty on the precious metal, according to the data released by the commerce ministry.
Gold imports dipped by 57.75 per cent to USD 2.3 billion in August, the data showed. However, silver imports rose by 127 per cent to USD 1.02 billion during the month, the data showed.
The government has increased import duty on precious metals from 6 per cent to 15 per cent effective May 13.
Cumulatively during April-August 2026-27, gold imports grew by 3.38 per cent to USD 17.47 billion, while silver imports declined 8.81 per cent to USD 1.74 billion.
Switzerland was the largest source of gold imports, with about a 40 per cent share, followed by the UAE (over 16 per cent) and South Africa (about 10 per cent).
The precious metal accounts for over 5 per cent of the country’s total imports.
The total imports from Switzerland dipped 45.4 per cent to USD 1.28 billion in August.
India is the world’s second-biggest gold consumer after China. The imports primarily help to meet the demand from the jewellery industry. The imports have implications for India’s current account deficit (CAD).
