Indian gold imports set to drop to near 30-year low in April

MUMBAI: India’s gold imports in April are expected to decline to about 15 tonnes, marking a near three-decade low for the month, according to industry and government sources cited in the report.

The sharp fall has been linked to an unexpected tax demand affecting banks, which handle most of the country’s refined gold imports. Surendra Mehta, secretary at the India Bullion and Jewellers Association, said banks had stopped bringing in shipments after Indian customs authorities began seeking a 3pc integrated goods and services tax on the metal.

When India introduced the integrated goods and services tax, or IGST, in 2017, banks importing gold were exempt from paying the 3pc levy. The current demand for the tax comes after a delay in the issuance of a formal government order authorising bullion imports by banks, Reuters had reported earlier this month.

A government official, speaking on condition of anonymity because they were not authorised to speak to the media, said that "banks did not clear any gold from customs this month. A small quantity was cleared via the India International Bullion Exchange (IIBX)."

India’s tax authorities did not immediately respond to a request for comment on the IGST now being sought on gold imports by banks.

Imports well below recent levels

India is the world’s second-largest consumer of gold. The country imported 35 tonnes of the metal in April 2025, while average monthly imports stood at about 60 tonnes during the fiscal year ending in March 2026.

Against that backdrop, the projected 15 tonnes for April this year would represent a steep drop. Sources said this would be the lowest April import volume in around 30 years, excluding 2020, when jewellery outlets were shut during the Covid-19 pandemic.

The decline could also put pressure on international gold prices.

The disruption appears to be concentrated in the banking channel, which is central to India’s refined gold trade. With customs clearances effectively stalled for banks and only limited quantities moving through the India International Bullion Exchange, overall inflows have fallen sharply.

As per details, the issue centres on the tax treatment of imported gold and the absence of a formal government order that would allow banks to continue bullion imports without the newly enforced levy. Industry participants and officials cited in the report linked this administrative delay directly to the slowdown in imports during April.

The expected fall in imports comes despite India’s position as one of the largest gold markets in the world, underlining the significance of the tax dispute for bullion trade flows in the country.