Kotak Warns of $88 Billion Gold Import Bill, Calls for Review

Uday Kotak has called for a dedicated committee to examine India's rising gold imports, warning that the country's gross gold import bill could reach $88-90 billion in FY27 and add pressure to the current account.

Kotak made this proposal at the Conference on Financing India's Journey Towards Viksit Bharat in New Delhi. He pointed out that India's gold imports stood at about $72 billion in FY26, while the country's current account deficit was around $25 billion.

Excluding gold, India would have recorded a current account surplus, Kotak said. For FY27, he estimated that the current account deficit could reach around $60 billion, assuming crude oil prices average about $90 a barrel.

Kotak projected gold imports at $88-90 billion for FY27 and emphasized the need for a policy response to consider both the import burden and continued household demand for gold. He proposed a committee to examine how household gold wealth could be better integrated with the formal economy while taking individual requirements into account.