India’s gold imports decline in September 2026 was sharp, with imports falling 81.27% year-on-year, while silver imports contracted 49.11%, according to Commerce Ministry data. The decline comes amid the West Asia crisis and government efforts to manage foreign exchange outflows and reduce pressure on the economy.
The government had increased import duty on precious metals from 6% to 15% in May 2026, making imported gold and silver more expensive. The higher duty may have influenced domestic demand and purchasing decisions.
PM Modi Urges People to Defer Gold Purchases
Prime Minister Narendra Modi has appealed to people to postpone gold purchases unless necessary, citing the economic uncertainty associated with the West Asia crisis.
India relies heavily on imports to meet domestic gold demand. Purchases from overseas add to the country’s import bill and foreign exchange requirements, particularly when international prices and domestic demand remain high.
Deferring non-essential purchases could help moderate gold import demand. However, future trends will also depend on international prices, domestic buying patterns and the cost of imports.
Gold continues to hold cultural and economic importance for Indian households, particularly during weddings and festivals. Any sustained decline in demand could influence import volumes in the coming months.
India’s Merchandise Imports and Exports in September
India’s merchandise imports rose to $74.61 billion in September, compared with $69.08 billion in September 2025. Meanwhile, merchandise exports increased to $44.40 billion from $36.08 billion a year earlier.
The export growth was supported by shipments of electronic goods, petroleum products, engineering goods, chemicals and agricultural products. Electronic goods recorded particularly strong growth during the month.
In the services sector, imports increased to $19.44 billion in September from $17.84 billion a year earlier. Services exports edged down to $36.35 billion, compared with $36.67 billion in the corresponding month last year.
What Could Happen Next?
The direction of gold and silver imports will depend on domestic demand, international prices, import duties and the wider economic impact of the West Asia crisis.
While lower precious-metal imports may ease some pressure on foreign exchange outflows, the broader trade position will also depend on merchandise and services exports, energy costs and other import requirements.
For official trade data and policy updates, visit the Department of Commerce.
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