India Gold Imports Plummet as Silver Sees Record Surge

India's precious metal import landscape has undergone a significant shift in August 2026, following the government's decision to increase customs duty on gold imports from 6 percent to 15 percent.

The move, which was announced on May 13, resulted in a dramatic decline in gold imports, with a 58 percent reduction recorded for the month. In contrast, silver imports saw a substantial surge of 127 percent, reaching $2.02 billion dollars.

The Indian government's decision to raise customs duty has had a direct impact on India's trade balance, leading to a significant improvement in the country's import bill. The lower expenditure on gold imports contributed to a reduction in the trade deficit from $18.86 billion dollars in August 2026 to $13.74 billion dollars.

The data highlights the sensitivity of gold demand to fiscal policy changes, particularly customs duty adjustments. Switzerland remained the largest source of gold for India in August, accounting for nearly 40 percent of total gold imports.