Gold imports plunge 81%, silver shipments fall 49% in September

India’s gold imports fell sharply in September, declining 81.27% from a year earlier, while silver imports dropped 49.11%, according to data released by the Commerce Ministry. The steep fall comes amid the West Asia crisis and the government’s efforts to conserve foreign exchange.The data shows that gold and silver were among the major import categories to record negative growth in September 2026.Gold imports recorded an 81.27% year-on-year decline in September, while silver imports contracted 49.11% compared with the same month last year.The fall comes after the government increased the import duty on precious metals from 6% to 15% in May 2026. The higher duty makes imported gold and silver more expensive, potentially affecting demand. PM URGES PEOPLE TO DEFER GOLD PURCHASESPrime Minister Narendra Modi has also urged people to defer gold purchases amid the West Asia crisis, which has caused large-scale disruptions. He has appealed to people to buy gold only when necessary, as the government looks to limit the economic impact of the crisis.The appeal comes amid concerns over higher energy costs and disruptions to global supply chains. As India depends heavily on imports to meet its gold demand, purchases of the precious metal add to the country’s import bill and foreign exchange requirements. Gold remains an important purchase for Indian households, particularly during weddings and festivals. However, when demand for imported gold rises, India needs to spend more foreign currency on purchases from overseas. This can add to pressure on the trade balance, especially when imports rise faster than exports.Deferring non-essential gold purchases could help reduce demand for imported gold. However, the extent of any impact will also depend on international prices, domestic buying patterns and the timing of imports.The country’s merchandise imports stood at $74.61 billion during the month, compared with $69.08 billion in September 2025.In the services sector, imports increased to $19.44 billion in September from $17.84 billion in the same month last year. Services exports, meanwhile, edged down to $36.35 billion from $36.67 billion a year earlier.Merchandise exports, meanwhile, rose to $44.40 billion from $36.08 billion a year earlier. It must be noted that the strong export growth was driven by higher shipments of electronic goods, petroleum products, engineering goods, chemicals and agricultural products. Electronic goods exports recorded particularly strong growth during the month, reflecting rising global demand for Indian-made products.Going forward, the movement in gold and silver imports will depend on domestic demand, international prices, import costs and the wider economic impact of the West Asia crisis.- Ends