Gold imports hit USD 71.98 bn in FY26, deficit widens

What changed in FY26

India’s gold import bill climbed to an all-time high of USD 71.98 billion in FY26, according to Commerce Ministry data. The increase came even as the quantity of gold imported fell, highlighting how sharply higher prices can inflate the import bill. Silver imports also surged, adding to pressure on the merchandise trade deficit. With gold and silver among India’s most watched import categories, the FY26 data adds a fresh macro layer for equity investors tracking currency, rates, and external balances.

Commerce Ministry numbers: the headline metrics

Commerce Ministry data showed gold imports rose 24% in FY26 to USD 71.98 billion. The data set also points to a wider import burden from silver in the same fiscal. Taken together, the two precious metals contributed to a larger trade gap for the year.

Higher prices, lower gold volumes

The FY26 rise in the value of gold imports was driven by prices rather than volumes. The Commerce Ministry noted the price increase from USD 76,617.48 per kg in FY25 to USD 99,825.38 per kg in FY26. Over the same period, gold import quantity declined from 757.09 tonnes (FY25) to 721.03 tonnes (FY26). In domestic markets, gold prices were reported around Rs 1,56,000 per 10 grams (inclusive of all taxes) in the national capital.

Silver imports spike alongside higher prices

Silver imports jumped about 150% to USD 12.00 billion in FY26, attributed to higher prices. In volume terms, silver imports rose 42% to 7,334.96 tonnes in FY26. Silver prices were reported around Rs 2.53 lakh per kg in the national capital. The combination of higher value and higher volumes underscores how silver can swing the import bill quickly when prices and industrial demand move together.

Trade deficit widens; CAD remains in focus

The rise in precious metals imports pushed India’s trade deficit to USD 333.20 billion during FY26, the data showed. The gold and silver import bill matters because it feeds directly into the current account through the goods trade balance. RBI data released on March 2 showed India’s current account deficit (CAD) rose to USD 13.20 billion, or 1.3% of GDP, in the December quarter, from USD 11.30 billion a year earlier. The RBI attributed the widening mainly to a higher trade deficit, linked to a decline in exports to the US.

India’s gold demand base: jewellery-led imports

India remains the world’s second-biggest gold consumer after China. Imports largely meet demand from the jewellery industry, which typically drives seasonal and festival-linked consumption cycles. That consumption pattern does not always align with external balance comfort, because price spikes can lift the import bill even when volumes flatten. For markets, this keeps gold imports relevant not just as a commodity story, but also as an input into currency and liquidity expectations.

Supplier mix: Switzerland leads; UAE and South Africa follow

In the April-February FY26 period, Switzerland remained the largest source of gold imports with around a 40% share, followed by the UAE (over 16%) and South Africa (about 10%). Imports from Switzerland rose 11.57% to USD 23.50 billion during April-February FY26. In February alone, imports from Switzerland surged 719.30% year-on-year to USD 2.71 billion. Separately, gold was reported to account for more than 5% of India’s total imports.

FY26 and recent-period context: values, volumes, and deficits

Gold import values have risen sharply over the last few years, with FY26 marking the new peak.

A separate Commerce Ministry data snapshot for April-February FY26 showed gold imports rose 28.73% to USD 69.00 billion versus USD 53.52 billion a year earlier. Over the same 11-month period, the trade deficit widened to USD 310.60 billion from USD 261.80 billion. Silver imports during April-February jumped 142.87% to USD 11.43 billion.

Recent monthly signals and policy tightening

Monthly trade data also showed bullion’s role in widening gaps. India’s merchandise trade deficit widened to USD 27.10 billion in February 2026, up from USD 14.42 billion a year earlier, as imports rose 24% year-on-year to USD 63.71 billion while exports fell 0.8% to USD 36.61 billion.

Against this backdrop, another policy development cited in the provided context was the government’s move on April 2, 2026 to impose immediate restrictions on all types of gold, silver, and platinum articles, citing misuse of Free Trade Agreements. The Directorate General of Foreign Trade (DGFT) said these restrictions would apply universally, overriding existing contracts and shipments.

Why the FY26 import surge matters for markets

For Indian equities, a larger gold and silver import bill is mainly a macro signal rather than a sector earnings trigger. It can amplify attention on the rupee, external financing needs, and the path of India’s current account. It also raises the likelihood of administrative action in bullion trade channels when import values accelerate. The next key datapoints for investors are updated trade prints, CAD releases, and any further DGFT or customs clarifications on the scope and implementation of restrictions.