India's gold imports crash 70%, stark reasons revealed

India, one of the world's largest gold importers, has seen a dramatic decline in its gold imports, with figures dropping by 67% to 70%. Monthly imports have shrunk to between 25 to 30 tons, a stark decrease from previous levels.

This sharp reduction follows the Indian government's decision to increase import duties on gold and silver from 6% to 15%, effective May 13, 2026. The government cited the need to curb overseas purchases and alleviate pressure on the country's foreign exchange reserves, particularly in light of global uncertainties exacerbated by Middle East crises.

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The customs duty on gold and silver was increased from 6% to 15% on May 13, 2026.

Further measures have restricted the entities authorized to import gold. Since April 1, 2026, only three designated agencies, including the state-owned Metals and Minerals Trading Corporation of India (MMTC), are permitted to import the precious metal, as customs have not re-authorized banks for this purpose.

An unnamed government official confirmed the significant impact of the duty increase, noting the substantial drop in import volumes. The weakened demand for gold jewelry is also a consequence of these measures. In the 2025-2026 fiscal year, India imported 721.05 tons of gold, valued at $71.98 billion.

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Monthly gold imports have shrunk to between 25 to 30 tons, a decrease of 67% to 70%.