Kamal Ghorui
India’s gold imports rose 28.73% to $69 billion during April-February 2025-26, driven by elevated prices of the precious metal, according to Commerce Ministry data cited by PTI.Gold imports had stood at $53.52 billion in the corresponding period of 2024-25.The sharp rise in imports contributed to a widening trade deficit, which increased to $310.60 billion in the 11-month period of the last fiscal from $261.80 billion a year earlier.Prices of gold are currently hovering around Rs 1,51,500 per 10 grams (inclusive of all taxes) in the national capital.Switzerland remained the largest source of gold imports with around 40% share, followed by the UAE (over 16%) and South Africa (about 10%).Gold accounts for more than 5% of India’s total imports. Imports from Switzerland rose 11.57% to $23.5 billion during April-February 2025-26, while in February alone, imports from the country surged 719.30% year-on-year to $2.71 billion.India is the world’s second-largest gold consumer after China, with imports largely catering to demand from the jewellery sector. These inflows also have implications for the country’s current account deficit (CAD).According to RBI data, CAD rose to $13.2 billion, or 1.3% of GDP, in the December quarter from $11.3 billion (1.1% of GDP) a year ago, mainly due to a higher trade deficit.However, for April-December 2025, CAD moderated to $30.1 billion (1% of GDP) compared to $36.6 billion (1.3% of GDP) in the same period of the previous year.Silver imports during April-February jumped 142.87% to $11.43 billion. Silver is widely used in industries such as electronics, automobiles and pharmaceuticals.To curb imports, the government last week imposed restrictions on all forms of gold, silver and platinum articles.
