- Gold imports rose slightly; silver dropped significantly in July.
- .Higher customs duties caused moderation in precious metal imports
- Switzerland leads as the primary source for India's gold imports.
India's imports of gold and silver moderated in July, according to commerce ministry data. Gold imports saw a modest increase of 4.77 per cent to USD 4.16 billion, while silver imports experienced a significant drop of 66.1 per cent, falling to USD 171.68 million during the month.
The Impact of Higher Import Duties
This decline in precious metals imports followed a substantial hike in customs duties for these precious metals. On May 13, the government raised the import duty from 6 per cent to 15 per cent. Consequently, gold prices in the national capital were approximately Rs 1,57,000 per 10 grams (all taxes included) on Thursday, with silver trading at roughly Rs 2.40 lakh per Kg.
For the cumulative period of April to July 2026-27, gold imports rose by 32.41 per cent to reach USD 15.17 billion. Conversely, silver imports during the same timeframe decreased by 50.81 per cent to USD 718.42 million.
Earlier in the year, gold imports surged by 81.69 per cent in April, followed by gains of 34 per cent in May and 7 per cent in June.
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Switzerland Remains Primary Import Source
Switzerland continued to lead as the primary source for gold imports with a 40 per cent share, followed by the UAE at over 16 per cent and South Africa at approximately 10 per cent. Notably, this precious metal represents more than 5 per cent of India's overall import bill.
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Total imports originating from Switzerland climbed 62.26 per cent to USD 2 billion in the month of July.
As the second-largest gold consumer globally after China, India relies on imports primarily to satisfy the needs of its jewellery sector. These import levels have significant consequences for the nation's current account deficit.
(With Inputs From PTI)