Gold imports increased by 192% amid global uncertainty, investors' confidence strengthened in terms of safe investment

Against the backdrop of global uncertainties emerging across the world over tariff war, gold imports into the country have gone up by a whopping 192.13% to $ 4.47 billion during March 2025. The imports of gold, impacting the current deficit account, dropped by nearly 62% during February 2025, whereas it rose by 40.8% in January as well as by 55.39% in December 2024. Silver imports decreased by 85.4 per cent to $119.3 million during March.

According to the Commerce Ministry, gold imports rose 27.27 per cent to $58 billion in the last financial year 2024-25 from $45.54 billion in 2023-24. Gold accounts for 8 per cent of the country's total imports. Silver imports declined by 11.24 per cent to $4.82 billion in the last financial year.

Despite the continuous rise in prices, the increase in imports of precious metals indicates that investors' confidence in gold remains strong as it is a safe investment instrument. Experts say that asset diversification towards gold amid global uncertainties and tensions in many countries, increasing demand among central banks and surge in prices can also be factors in the import growth.

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 more than 16 per cent share and South Africa is the third largest import source with about 10 per cent.

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

Due to the jump in gold imports, the country's trade deficit (difference between imports and exports) increased to $ 21.54 billion in March. 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 increased by $ 1.57 billion to $ 677.83 billion in the week ended April 11. This is the sixth consecutive week of growth in reserves. According to RBI, foreign currency assets increased by $892 million to $574.9 billion.