Gold Imports Triple to Record USD 14.72 Billion in October 2025

India witnessed a threefold surge in gold imports, reaching a record USD 14.72 billion in October 2025, up from USD 4.92 billion in October 2024, according to data released by the Ministry of Commerce. The dramatic rise is largely attributed to strong festival and wedding season demand, a traditional driver of gold consumption in the country.

Trade Deficit Worsens Amid Import Spike

The unprecedented gold import volume contributed significantly to India recording a trade deficit of USD 41.68 billion in October, the highest ever. The surge in gold purchases comes despite efforts to manage the country’s current account deficit and reduce dependency on precious metal imports.

Breakdown of Gold Import Sources

India sources its gold primarily from,

  • Switzerland – 40% share, with imports rising 403.67% to USD 5.08 billion in October.
  • United Arab Emirates (UAE) – over 16% share.
  • South Africa – around 10% share.

Gold imports accounted for over 5% of India’s total imports during the month.

Price Surge and Industry Implications

Gold prices have climbed to Rs 1.29 lakh per 10 grams in Delhi, reflecting the global upward trend amid heightened demand. Despite this, the gems and jewellery sector saw a 29.5% decline in exports, totalling USD 2.3 billion in October, pointing to a domestic consumption-heavy market.

Commerce Secretary Rajesh Agrawal confirmed the surge was driven by seasonal demand and ruled out the possibility of double accounting, which had led to data revisions in January 2025.

Cumulative Import Trends & CAD

From April to October FY2025-26, gold imports rose by 21.44% to USD 41.23 billion, compared to USD 34 billion in the same period last fiscal.

On the macroeconomic front, India’s Current Account Deficit (CAD) narrowed to 0.2% of GDP (USD 2.4 billion) in Q1 FY26, supported by strong services exports, compared to 0.9% of GDP (USD 8.6 billion) a year earlier.

Silver Imports See Massive Growth

Silver imports also registered a sharp increase, surging by 528.71% to USD 2.71 billion in October. Silver demand is largely driven by industrial sectors such as electronics, pharmaceuticals, and automotive industries.

Shivam

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