India's Gold Imports Drop Sharply as Silver Surges

India's gold imports plummeted by 57.75% to USD 2.3 billion in August 2026, following a 15% duty hike on precious metals imposed by the government in May of that year.

The move aimed to curb foreign exchange outflows and manage the nation's trade deficit, which has been sensitive to India's high demand for gold.

As gold demand cooled under the weight of higher taxes, market behavior shifted toward silver, with imports surging by 127% to reach USD 1.02 billion in August 2026.

The jewellery industry is grappling with the risk of a growing grey market, where unofficial or smuggled gold trade increases when import duties are significantly high.