India’s gold imports fell 81% in September after the duty hike

What's going on here?

On 15 October 2026, the Commerce Ministry published September merchandise trade figures. Gold imports fell 81.27% year on year to $1.8 billion, the second straight monthly decline. Silver imports dropped 49.11% to about $665 million. The slide follows the government’s decision in May 2026 to raise import duties on gold, silver, and platinum from 6% to 15%. For the April–September half of FY27, gold imports totalled $19.27 billion, down 27.32% from the same period a year ago, while silver imports fell 25% to $2.4 billion. Officials have also urged households to defer discretionary bullion buying while West Asia tensions disrupt shipping lanes.

What does this mean?

Gold still accounts for more than 5% of India’s import bill and feeds the jewellery industry ahead of Diwali. A thinner import pipeline eases pressure on the trade deficit and on dollars spent overseas, which matters while the rupee has been volatile. It also lines up with mutual funds pausing bulk subscriptions into gold ETFs this week: financial and physical channels are both adjusting to higher duties and record international prices. Jewellers may lean on inventory built earlier in the year, while households weighing wedding purchases face higher landed costs even as global bullion swings.

Why should I care?

If you plan festive gold buying, compare making charges and whether your jeweller is passing through duty-led price moves. Investors in gold ETFs should read fund notices on liquidity gates alongside import data. Exporters and policymakers will watch whether the import bill stays lower without a sharp rebound in smuggling or informal flows. Track October customs data, international gold prices, and whether duty relief or festival promotions appear before peak shopping weekends.