India's gold imports have declined sharply after the government raised customs duty on the precious metal, with monthly inbound shipments falling by more than 65% to 25-30 metric tonnes (MT) from 75-100 MT earlier, a senior government official said. The decline comes even as banks are yet to be reinstated as designated importers of gold.
According to the official, customs authorities have not re-notified banks as nominated agencies for gold imports since April 1, 2026. As a result, only three nominated agencies, including MMTC, are currently authorised to import the precious metal.
"Imports have come down substantially after the duty increase. Earlier, imports were in the range of 75-100 MT per month. They are now around 25-30 MT. But we can only capture the quantity on which duty has been paid. It is not just about imports, jewellery demand has also weakened," the official said.
The absence of banks from the list of nominated importers has further tightened the import channel. Traditionally, banks have been among the largest importers of bullion, supplying gold to jewellers and traders across the country.
"As of now, imports through nominated agencies have been minimised. Normally, nominated agencies are re-notified every year. This year, from April 1, banks have not been re-notified. So, at present, only the three nominated agencies are authorised to import gold," the official added.
With only three agencies currently permitted to import gold, the bullion industry is closely watching whether the government will restore banks' designated importer status in the coming months.
The government had raised customs duty on gold and silver from 6% to 15% with effect from May 13, 2026, citing the need to conserve foreign exchange reserves amid heightened global uncertainty triggered by the West Asia crisis.
Industry participants have since reported softer demand, particularly in the retail segment, as higher import duties and elevated global prices have pushed domestic gold prices to record levels.
India is one of the world's largest importers of gold. According to Commerce Ministry data, the country imported 721.05 MT of gold worth $71.98 billion during 2025-26.
