India’s gold imports have witnessed a significant decline, falling to around 25–30 metric tonnes per month compared to the earlier range of 75–100 metric tonnes, Moneycontrol reported citing an official.
The sharp reduction comes after an increase in import duties on gold, which has dampened overall inbound shipments of the precious metal.
According to the report, higher taxation has made gold imports less attractive, leading to a substantial moderation in monthly import volumes.
The change reflects the direct impact of policy adjustments aimed at managing trade flows and controlling import dependency.
In addition to the duty hike, another key regulatory change has further tightened the import framework.
Customs authorities have not notified banks as designated importers of gold effective from April 1, 2026.
This has altered the traditional import channel structure, which earlier allowed multiple financial institutions to participate in gold imports.
As a result of this development, only a limited number of agencies are currently permitted to import gold into India.
At present, just three agencies, including MMTC, remain authorised to bring gold into the country.
This has effectively consolidated import activity into a much narrower set of approved entities.
The combined impact of higher import duties and reduced participation by banks has led to a structural shift in India’s gold import ecosystem.
With fewer authorised importers and higher costs, monthly inflows have declined sharply from previous levels.
Gold imports play a crucial role in India’s trade balance, as the country is one of the largest consumers of gold globally.
Any significant change in import volumes can have implications for the current account deficit, currency movement, and domestic gold prices.
The latest developments indicate a more tightly controlled import regime, with regulatory and policy measures working together to curb gold inflows and streamline authorised import channels.