Gold Imports Surge 192% To $4.47 Bn In March

Switzerland is the largest source of gold imports, with about 40% share, followed by the UAE (16%) and South Africa (10%). The precious metal accounts for 8% of India’s total imports

New Delhi: After registering a negative growth, India’s gold imports, which impact Current Account Deficit (CAD), jumped by 192.13 per cent to $4.47 billion in March, on account of significant increase in the prices of the yellow metal according to Commerce Ministry data.

Gold imports stood at $1.53 billion in January 2024. Cumulatively, during April-March 2024-25, the inbound shipments rose 27.27 per cent to $58 billion against $45.54 billion in 2023-24. The increase in imports also indicates strong investor confidence in the precious metal as a safe asset. The other reasons include asset diversification towards gold due to global uncertainties, increasing demand from banks, and jump in prices.

On April 17, the gold prices rose by Rs70 to hit yet another record high of Rs98,170 per 10 grams in the national capital. The prices soared to record highs due a weaker dollar, escalating trade war tensions, and growing concerns over global economic growth following US President Donald Trump’s tariff announcements.

However, silver prices plunged by Rs1,400 to Rs98,000 per kg. The white metal had settled at Rs99,400 per kg in the previous market close. Silver imports in March contracted by 85.4 per cent to $119.3 million. It was down 11.24 per cent year-on-year in 2024-25 to $4.82 billion. Switzerland is the largest source of gold imports, with about 40 per cent share, followed by the UAE (over 16 per cent) and South Africa (about 10 per cent). The precious metal accounts for 8 per cent of the country’s total imports. In volume terms, the imports dipped to 757.15 tonne in 2024-25 against 795.32 tonne in 2023-24.

The gold imports in February were down by about 62 per cent, while it rose by 40.8 per cent in January and 55.39 per cent in December 2024. The jump in gold imports pushed the country’s trade deficit (difference between imports and exports) to $21.54 in March. It touched an all-time high of $282.82 billion in the last fiscal. India is the world’s second-biggest gold consumer after China. The imports mainly take care of the demand by the jewellery industry.

Gems and jewellery exports during the month rose by 10.62 per cent year-on-year to about $3 billion. It was however dipped by 8.84 per cent to $29.82 billion in 2024-25 from $32.7 billion in 2023-24. India’s CAD inched up to $11.5 billion, or 1.1 per cent of GDP, in the December quarter from $10.4 billion (1.1% of GDP) in the year-ago period, mainly due to higher trade deficit. It widened to $37.0 billion (1.3% of GDP) during April-December 2024 from $30.6 billion (1.1% of GDP) during the corresponding period of last year.