India’s gold imports plunge 81% to $1.8 billion in September after duty hike
Gold imports fell 81.27 per cent and silver imports 49.11 per cent in September 2026, following a customs duty increase and an appeal to defer purchases.
India’s gold purchases from abroad collapsed in September 2026, with the import bill falling 81.27 per cent from a year earlier to about $1.8 billion, according to Commerce Ministry trade data released on 15 October.
Silver showed a similar trend. Imports of the white metal were down 49.11 per cent at $665.08 million. For both metals, this was the second straight month of decline, The Hans India reported.
Six-month trend
The fall is also visible over a longer stretch. In April–September 2026, the first half of the financial year, gold imports dropped 27.32 per cent to $19.27 billion, while silver imports slid 25.17 per cent to about $2.4 billion.
- September gold imports: about $1.8 billion, down 81.27 per cent
- September silver imports: $665.08 million, down 49.11 per cent
- April–September gold imports: $19.27 billion, down 27.32 per cent
- April–September silver imports: about $2.4 billion, down 25.17 per cent
Why imports have fallen
Reports linked the sharp drop to two government moves. Customs duty on precious metals was raised from 6 per cent to 15 per cent with effect from 13 May, making imported bullion costlier. Prime Minister Narendra Modi has also urged citizens to put off gold purchases in view of the West Asia crisis, which has disrupted trade and pushed up energy costs, according to Kotak Neo and NewsBytes.
The trade data does not show how much of the decline is due to each of these factors, Kotak Neo noted.
Where India’s gold comes from
Switzerland remained the largest supplier, accounting for about 40 per cent of gold imports, followed by the United Arab Emirates with over 16 per cent and South Africa with around 10 per cent, The Hans India reported. Gold makes up more than 5 per cent of the country’s total import bill.
The decline in gold shipments came in the same month that India’s overall merchandise imports rose to $74.61 billion and exports reached $44.40 billion, narrowing the monthly trade deficit.
The Daily Rostrum could not confirm claims that the government is preparing to tighten rules on gold investment. The reports reviewed for this story mention only the duty increase and the Prime Minister’s appeal, and no official announcement on new curbs has been made.
Sources: The Hans India, Kotak Neo, NewsBytes
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