India's Gold Imports Plummet to 30-Year Low Amid GST Changes

India's gold imports are expected to plummet to a 30-year low in April, with only 15 tons projected due to the government's new 3% Integrated Goods and Services Tax. This drastic reduction follows banks halting shipments, significantly impacting the market. The anticipated value of imports is around $1.3 billion, a sharp decline from previous years. The situation raises concerns about the trade deficit and the rupee's value, as the country navigates these new tax regulations. Read on to discover the implications of this development on India's economy and gold market.

By Narendra Chaudhary Apr 30, 2026, 22:49 IST

Gold Import Crisis in India

New Delhi: India's gold imports are projected to hit a nearly 30-year low in April, with estimates suggesting only 15 tons will be imported this month. This significant decline is attributed to banks halting gold shipments following the government's implementation of a 3% Integrated Goods and Services Tax (IGST). According to a report citing industry and government sources, India, the world's second-largest gold consumer, imported 25 tons last year, while the average monthly import for 2025-26 was around 60 tons.

The anticipated 15 tons of gold imports in April would mark the lowest level in nearly three decades, excluding 2020 when jewelry stores were closed due to the pandemic. The value of gold imports for April could reach approximately $1.3 billion, a stark contrast to the nearly $6 billion average monthly imports in the previous fiscal year. Despite the festival of Akshaya Tritiya on April 19, which typically boosts gold purchases, imports have declined.

GST Collection: Surendra Mehta, Secretary of the India Bullion and Jewelers Association, stated that banks have ceased shipments as customs have begun collecting the 3% IGST. Most refined gold in the country is imported by banks, which were previously exempt from this tax when GST was introduced in 2017. However, this exemption has now been revoked.

A government official confirmed that no gold shipments have been cleared by banks this month, with only a small amount processed through the India International Bullion Exchange. Tax officials have not commented on this situation. A bullion dealer in Mumbai noted that banks had purchased gold in anticipation of demand during Akshaya Tritiya, but much of it remains in storage, with approximately 8 tons currently held in vaults.

Gold Import Summary: April's gold imports may reach a 30-year low, with banks not clearing any shipments this month due to the 3% IGST collection by the government. India remains the world's second-largest gold consumer.

Government Strategy: Dealers suggest that banks will only clear shipments if customs allow them to do so without demanding GST. Sources indicate this could be part of the government's strategy to reduce the trade deficit and support the rupee, which has recently seen a significant decline and is currently the worst-performing Asian currency this year.