India's Gold Imports Rise as Silver Demand Plummets Post-Duty Hike

India's gold imports rose by 4.77% to $4.16 billion in July 2026, while silver imports plummeted 66.1% to $171.68 million following a sharp customs duty hike from 6% to 15% on May 13.

The government's decision to raise taxes is significantly altering buying patterns and raising concerns about potential smuggling. Industry observers suggest that silver, often used for both industrial purposes and investment, is more sensitive to these cost increases, causing buyers to pull back or delay purchases.

Gold imports in July showed a modest growth compared to earlier months in the fiscal year. Cumulative data from April to July 2026 shows gold imports climbing 32.41% to reach $15.17 billion. Switzerland remains the primary supplier, accounting for nearly 40% of India's gold inflow.

However, silver imports took a significant hit, plummeting 66.1% to $171.68 million in July. The April-to-July cumulative figures tell a similar story, with silver imports declining by 50.81% to $718.42 million.