Gold imports up 192% amid global uncertainty, investor confidence strong in terms of safe investments

New Delhi| The country’s gold imports rose by a whopping 192.13 per cent to reach $4.47 billion in March, 2025 amid global uncertainties stemming worldwide from the tariff war. Gold imports, which impact the current account deficit, had fallen by about 62 per cent in February, 2025, compared to a jump of 40.8 per cent in January and 55.39 per cent in December, 2024. However, silver imports declined by 85.4 percent to $119.3 million in March.

According to the Commerce Ministry, gold imports increased by 27.27 percent to reach $58 billion in the last financial year 2024-25, which was $45.54 billion in 2023-24. Gold accounts for 8 per cent of the country’s total imports. In the last financial year, silver imports declined by 11.24 percent to $4.82 billion.

The increase in precious metal imports despite the continuous rise in prices indicates that investor confidence in gold remains strong, as it is a safe means of investment. Experts say asset diversification towards gold, rising demand among central banks and rising prices amid global uncertainties and tensions in many countries could also be factors in import growth.

Switzerland is the largest source of imports
Switzerland is the largest source of gold imports for India, with a share of about 40 per cent. The United Arab Emirates (UAE) is the second largest import source with a share of over 16 per cent and South Africa the third with close to 10 per cent.

Price increased by Rs 18,780 this year
Gold prices have seen a rise of Rs 18,780, or 23.65 per cent, so far this year. It had closed at Rs 79,390 per 10 grams on January 1, 2025, while rising to a record high of Rs 98,170 per 10 grams on April 17.

Trade deficit increased due to excess purchases
The country’s trade deficit (difference between imports and exports) increased to $21.54 billion in March due to a surge in gold imports. In the last financial year 2024-25, it had reached an all-time high of $282.82 billion. The country’s foreign exchange (forex) reserves rose by $1.57 billion to reach $677.83 billion in the week ending April 11. This is the sixth consecutive week of increase in reserves. According to RBI, foreign currency assets increased by $892 million to reach $574.9 billion.