Key facts
- India's gold imports surged 81.7% in April 2026 and continued to rise 34% in May 2026, despite a significant increase in import duties.
- The total effective tax burden on imported gold now stands at approximately 18.4% after duty revisions.
- Gold imports for FY2025-26 reached $72 billion, a 24.1% increase from the previous fiscal year.
- Factors contributing to resilient demand include strong jewelry consumption and investor interest in safe-haven assets.
India's demand for gold continues to surge despite a significant increase in import duties, according to a report by the Global Trade Research Initiative (GTRI).
Gold imports saw a substantial jump of 81.7% year-on-year to $5.63 billion in April 2026, just before the government revised its import duty structure. Following the implementation of higher duties on May 13, 2026, imports continued to climb, increasing by 34% in May to $3.42 billion compared to the previous year.
Cumulatively, imports for April and May 2026 reached $9.04 billion, marking a 60.1% rise from the same period last year. For the full fiscal year 2025-26, gold imports grew 24.1% to $72 billion from $58 billion in FY2024-25.
The revised duty structure includes an increase in the Basic Customs Duty from 5% to 10% and the Agriculture Infrastructure and Development Cess from 1% to 5%. With the addition of a 3% Integrated GST, the total effective tax burden on imported gold now stands at approximately 18.4%.
The GTRI report attributes the sustained import levels to strong jewelry consumption, heightened investor interest in gold as a safe-haven asset amid global uncertainties, and elevated international gold prices. While the duty hike has moderated the growth rate from April's peak, it has not significantly dampened overall demand.
Sustained high imports could potentially pressure India's trade deficit and lead to greater foreign exchange outflows, especially given geopolitical tensions in West Asia that could impact energy prices.