Gold Imports Rise in India Despite PM Modi’s Appeal to Reduce Purchases

Despite Prime Minister Narendra Modi`s repeated appeals to curb gold purchases and the government`s efforts to discourage imports through higher duties, India`s demand for gold continues to remain strong.

According to the latest trade data, India`s gold imports rose by 34% in May this year compared to the same month last year, reaching $3.41 billion. This increase comes even as gold prices remain elevated in the international market.

In contrast, silver imports saw a sharp decline. Silver imports, which stood at $566.22 million in May 2025, dropped to just $75.57 million in May 2026, marking a steep fall of 86.65%.

The surge in gold imports has also contributed to a widening trade deficit. India`s overall trade gap, the difference between exports and imports, has increased to $28.21 billion. Gold alone now accounts for around 5% of the country`s total import value.

Switzerland remains India`s largest source of gold imports, contributing about 40% of the total supply. The United Arab Emirates follows with more than 16%, while South Africa accounts for nearly 10%.

However, data released by the Ministry of Commerce shows that gold imports from Switzerland declined by 57.73% in May compared to the previous year.

Economists believe that strong investment demand and purchases related to the wedding season continue to drive gold consumption in India, despite higher prices and government efforts to reduce imports.