Silver Imports Jump 129% as Gold Prices Raise India’s Import Bill

India is witnessing a sharp rise in the prices of gold and silver , a trend that is significantly influencing import patterns and the country’s trade balance. In domestic markets this week, 24-carat gold is trading around ₹1.54–₹1.59 lakh per 10 grams , while silver prices are hovering roughly between ₹2.6 lakh and ₹3.0 lakh per kilogram , depending on the market and daily fluctuations. These elevated price levels, driven by global bullion trends and currency movements, are reshaping demand, investment behaviour, and foreign exchange outflows.

According to data released by the Union Commerce Ministry for April–December 2025, the value of silver imports skyrocketed by 128.95 percent , reaching $7.77 billion compared with the same period last year. This surge was driven by a 56.07 percent increase in import volumes along with a 46.69 percent rise in international silver prices , sharply increasing India’s import bill. India remains the world’s largest consumer of silver and depends heavily on imports to meet industrial and investment demand.

The rising use of silver in solar panels, electronics, electric vehicles, and medical equipment has further strengthened demand. With the global push toward renewable energy and expanding electronics manufacturing, analysts see silver consumption continuing to grow structurally in the coming years.

Gold imports, however, present a contrasting trend. Between April and December 2025, the value of gold imports rose modestly by 1.83 percent to $49.39 billion , despite a sharp fall in import volumes. The quantity imported declined from 639.30 thousand kilograms to 522.38 thousand kilograms , marking an 18.29 percent drop . However, a 24.62 percent increase in global gold prices pushed up the total import bill.

Over the past six years, India’s gold import pattern has undergone a structural shift. From FY2019 to 2025, import volumes declined by nearly 23 percent , while total import value increased by 76 percent . This indicates that Indians are purchasing less gold by weight, but rising global prices continue to exert pressure on foreign exchange reserves.

Although jewellery demand has softened due to high prices, investment demand for gold bars, coins, and exchange-traded products has strengthened, as investors turn to precious metals as safe-haven assets amid global economic uncertainty and currency volatility.

Trade data for January 2026 show that India’s total exports (goods and services) grew 13.16 percent to $80.45 billion . While this reflects improving export momentum, imports rose faster 18.77 percent to $90.83 billion indicating continued dependence on imports to meet domestic needs.

As imports outpace exports, the country’s trade deficit has widened significantly. In January 2026, the deficit stood at $10.38 billion , nearly double the $5.39 billion recorded in the same month last year. Rising expenditure on precious metal imports, particularly gold and silver, has played a key role in expanding this gap.

Economists caution that sustained high bullion imports can put pressure on the rupee and the current account balance. Policymakers have periodically considered adjusting import duties to manage inflows, but such steps must balance domestic demand, revenue considerations, and the risk of smuggling.

Overall, the surge in gold and silver prices, combined with strong domestic demand and global commodity trends, highlights evolving consumption patterns and the growing macroeconomic impact of precious metal imports on India’s external stability.