Despite record prices, India’s Gold and Silver imports nearly doubled during September 

India’s gold and silver imports nearly doubled in September 2025 despite record-high domestic prices, as banks and jewellers rushed to build inventories ahead of the festive season and a possible increase in import base prices. The surge, while supporting global bullion markets, risks widening India’s trade deficit and putting additional pressure on the rupee.

Core Development Gold imports: 64.17 tons worth $5.4 billion in August; September volumes expected to nearly double. Silver imports: 410.8 tons worth $451.6 million in August; imports surged in September. Domestic prices: Gold futures hit a record ₹1.17 lakh per 10g, silver touched ₹1.44 lakh per kg.

Dealers reported paying $8 per ounce premiums over official domestic prices to stock up ahead of Diwali. Jewellers and banks cleared large consignments through customs in recent weeks, with even higher clearances expected before base import price revisions. Key Drivers / Issues Festive demand: Diwali and wedding season spurred advance stocking.

Consumers may face elevated retail prices but continue buying due to cultural significance. Government finances face pressure from a higher import bill, risking a wider current account deficit. Global bullion markets benefit from India’s demand offsetting weak Chinese activity.

Strategic Outlook India’s strong festive-driven imports highlight the country’s cultural and financial reliance on bullion, even at record highs. Policymakers will need to balance festive season demand with broader macroeconomic risks tied to external accounts.

The surge underlines India’s outsized role in global gold markets. While festive demand supports jewellers and bullion trade, it raises concerns about trade balances and currency stability amid already volatile global conditions.