India's gold imports fall 81.27% and silver 49.11% in September on higher duty

India's gold imports fell 81.27 per cent year on year in September 2026, according to data released by the Commerce Ministry. Silver imports also recorded a steep fall of 49.11 per cent. The trend in gold and silver imports shows a major shift. It is being seen as the result of pressure on the global economy from the crisis in West Asia and efforts to conserve the country's foreign exchange.

In May 2026, the government raised the import duty on all major precious metals, including gold and silver, from 6 per cent to 15 per cent. This made imported gold and silver costlier and directly hit domestic demand. Geopolitical tension in West Asia has also created economic uncertainty. In this climate, consumers and traders are being cautious.

In the current financial year (April-September 2026-27), gold imports fell 27.32 per cent to $19.27 billion. Silver imports fell 25.17 per cent to $2.4 billion. Switzerland accounts for about 40 per cent of India's gold imports and is the largest supplier. It is followed by the United Arab Emirates (UAE) and South Africa.

To meet the economic challenges created by the West Asia crisis, Prime Minister Narendra Modi had appealed to the countrymen to avoid buying gold for the time being. He had also said that people should buy only if it is absolutely necessary. India meets a large part of its total gold requirement through imports, which costs the country a large amount of foreign exchange. The fall in these imports is important for the country's broader economic interest, to protect foreign exchange reserves and keep the current account deficit (CAD) under control.

Although imports of precious metals have fallen, the country's overall merchandise imports and exports have risen. Total imports in September 2026 reached $74.61 billion, against $69.08 billion in the same month last year. Exports rose from $36.08 billion to $44.40 billion. Strong exports of electronic goods, petroleum products, engineering goods and agricultural products kept the country's trade position firm.

A fall in imports does not necessarily mean gold and silver will become cheaper for consumers. Retail prices in the country depend on international market rates, the rupee-dollar exchange rate and the increased import duty. According to experts, how domestic demand holds up during the coming festival and wedding season will decide the picture for trade and imports ahead.