- India's gold imports dropped over 50% year-on-year to 22-24 tonnes in March
- March 2025 imports were the third-lowest in 20 years, lowest since 2022 and 2009
- Disruptions from US-Israel strike and UAE airspace closure impacted gold shipments
India's gold imports plunged over 50% year-on-year to just 22-24 tonnes in March, marking the third-lowest March tally in two decades, according to trade and industry sources. The country had imported 50.46 tonnes in the same month last year, according to Commerce Ministry data.
The lowest March import was recorded in 2022 at 19.51 tonnes, followed by 2009 at 20.06 tonnes.
The sharp decline was driven by heavy front-loaded imports in January and February, weak retail demand, and liquidity constraints. Imports were further disrupted by the US-Israel strike on Iran, which led to airspace closures across Gulf nations, particularly the United Arab Emirates, the second-largest gold supplier to India.
"The fall to around 20-24 tonnes in March reflects a perfect storm of logistical and economic headwinds," said Prithviraj Kothari, Managing Director at RiddiSiddhi Bullions Ltd. "The closure of the Strait of Hormuz has choked supply lines, and since the UAE typically accounts for nearly a quarter of India's gold inflows, disruptions there have compressed shipments."
Kothari noted that retailers had aggressively imported gold in January (nearly 100 tonnes), anticipating a duty hike in the Union Budget, leading to an oversupply that reduced the need for fresh March shipments.
Trade data released by the commerce ministry on April 15 showed the value of gold imports fell nearly 32% on year to $3.06 billion in March. Monthly provisional data released by the ministry provides import data only in value terms.
Commerce Ministry data released April 15 showed the value of gold imports fell 32% on year to $3.06 billion in March. Gold was the fourth-largest import commodity, accounting for 5.1% of foreign exchange outflows, behind petroleum, electronics, and machinery. In February, gold's share was far higher at 11.7% ($7.45 billion). Monthly provisional trade data released by the ministry provides is only in value terms.
The Gem and Jewellery Export Promotion Council reported that imports of gold bars dropped 61.5% to $182.31 million in March.
"The record-high domestic prices peaking near Rs 1.8 lakh per 10 grams earlier this year have pushed consumers toward 'wait-and-watch' behaviour. Furthermore, March coincides with the Indian financial year-end, where liquidity is diverted toward statutory taxes and year-end closures rather than inventory restocking," Kothari added.
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The surge in prices has hurt jewellery sales, which account for over 60% of India's gold demand, said Kumar Jain, owner of Umedmal Tilokchand Zaveri.
During January-February, Switzerland was India's largest bullion supplier (37.79 tonnes), followed by Chile (31.74 tonnes), the UAE (28.61 tonnes), Peru (16.16 tonnes), and Ghana (11.84 tonnes), according to commerce ministry data.
India, the world's second-largest importer and consumer after China, imported 640.19 tonnes of gold in 2025, compared with 812.22 tonnes in 2024 and 743.86 tonnes in 2023.
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