India Gold Imports Soar Towards $90B as Kotak Sounds Warning on CAD

India's gold imports could reach $88 billion to $90 billion this fiscal year, according to veteran banker Uday Kotak. This would put additional pressure on the country's current account deficit, which was around $25 billion in FY26. During the same period, gross gold imports reached roughly $72 billion, and if global crude oil prices average about $90, India's current account deficit could reach around $60 billion.

Kotak proposed considering a committee to examine how household gold wealth could support productive economic activity. He suggested that this committee focus on putting existing gold wealth to productive use rather than only examining future imports.

India needs tighter fiscal management, Kotak said, as the combined fiscal deficit remains above 7%. He compared this figure with a US fiscal deficit of about 6% and acknowledged the fiscal pressures facing the central government and states. Kotak also called for lower dependence on imports and stronger domestic production.