India's Gold Imports Plunge Nearly 40% As October Sees Steepest Monthly Decline

India's gold import bill witnessed a substantial contraction during the first seven months of the 2026-27 financial year. Fresh data from the Department of Commerce indicates that the country's gold imports reached $24.78 billion between April and October 2026, a significant drop from the $41.24 billion recorded during the same period in 2025. This downward trend, which has sparked interest regarding India's gold price movements, follows a correction in international bullion values.

While the fiscal year began with growth, the momentum shifted sharply in the second quarter. April imports rose to $5.63 billion, and May followed with $3.42 billion. Modest increases continued through June and July. However, the trend reversed significantly from August onward. September imports fell to $1.80 billion, and October saw the steepest decline, with imports contracting by 62.57 per cent year-on-year to $5.51 billion.

India's gold imports dropped nearly 40 percent in seven months as international prices retreated from recent peaks.

Market Dynamics and Price Trends

The World Gold Council (WGC) reports that gold closed October at $3,913 per ounce, a 6.3 per cent monthly decline. This figure sits approximately 25 per cent below the record peak of $5,405 per ounce observed in January 2026. According to the WGC, while gold is trading well below its 200-day moving average and the US dollar has strengthened—two conditions historically associated with a price recovery—speculative market positions remain high, which may hinder a sustained rebound.

Gems and Jewellery Export Performance

Despite the decline in bullion imports, the gems and jewellery export sector has shown resilience. Outbound shipments reached $18.50 billion during the April–October period, compared to $16.49 billion in the same timeframe the previous year. This indicates a contrasting trend where the industry continues to expand its global footprint even as domestic demand for raw gold imports experiences a substantial cooling period.

Why it matters

The contraction in gold imports reflects a significant shift in India's precious metals trade, influenced by fluctuating global prices and market corrections. This trend impacts the trade balance and reflects changing purchasing patterns within the domestic market as investors and consumers respond to the metal's retreat from record highs.