The government increased import duty on precious metals from 6 per cent to 15 per cent effective May 13.
According to the data, silver imports dipped to USD 75.57 million during the month under review from USD 566.22 million in May 2025.
The rise in gold imports in May pushed the country’s trade deficit (difference between imports and exports) to USD 28.21 billion. The price of the yellow metal is hovering near Rs 1,60,000 per 10 grams (inclusive of all taxes) in the national capital. Silver was priced at around Rs 2.60 lakh per Kg.
Switzerland is the largest source of gold imports, with about 40 per cent share, followed by the UAE (over 16 per cent) and South Africa (about 10 per cent). In May, total gold imports from Switzerland dipped 57.73 per cent and by 20.34 per cent during the first two months of 2026-27.
The precious metal accounts for over 5 per cent of the country’s total imports.
During April-May 2026-27, gold imports rose 60.14 per cent to USD 9.04 billion, while silver imports declined about 33 per cent to USD 486.58 million.In the last 2025-26 fiscal, gold imports rose by 24 per cent to hit an all-time high of USD 71.98 billion. In volume terms, however, the imports dipped 4.76 per cent to 721.03 tonnes.
India is the world’s second-biggest gold consumer after China. The imports mainly meet the demand of the jewellery industry. The imports have implications for India’s current account deficit (CAD).
India reported a current account surplus of USD 7.1 billion, or 0.7 per cent of GDP, in the January-March quarter of 2025-26, according to the Reserve Bank data. The surplus stood at USD 13.7 billion, or 1.4 per cent of GDP, in the fourth quarter of 2024-25.
However, for the entire fiscal year, the current account deficit stood at USD 25.2 billion, or 0.6 per cent of GDP, compared to USD 22.9 billion, or 0.6 per cent of GDP, during 2024-25. A CAD occurs when the value of goods and services imported and other payments exceeds the value of export of goods and services and other receipts by a country in a particular period.