India’s demand for gold saw a significant spike during the first eleven months of the 2025-26 fiscal year, with imports climbing nearly 29% to reach $69 billion. This surge, recorded between April and February, highlights a robust appetite for the precious metal despite fluctuating global prices.
Several factors contributed to this sharp increase, including strong festive and wedding season demand, which traditionally drives bullion consumption in India. Additionally, many investors turned to gold as a safe-haven asset amid global economic uncertainties and inflationary pressures.
The rise in imports has implications for the country’s trade deficit, as gold remains one of the largest components of India’s import bill. While the volume of gold entering the country increased, the total value was also pushed higher by elevated international gold rates during this period.
Economists suggest that if this trend continues through the end of the fiscal year, it could put further pressure on the current account deficit (CAD). However, the government and the Reserve Bank of India continue to monitor these inflows closely to balance domestic demand with macroeconomic stability.
