Surge in gold imports in March widened the trade deficit to a four-month high of $10.4 billion as against $4.4 billion in March 2016.
Silver imports, however, dipped 3.19 per cent to $204.2 million in March.
According to rating agency ICRA, the imports surge was led by restocking, as well as marriage and festive season demand.
India is the world's second biggest gold consumer after China. The imports mainly take care of demand from the jewellery industry.
In volume terms, India imported 560.32 tonnes of gold during April-January period of the last fiscal year.
Gold import aggregated to 968.06 tonnes in the entire fiscal year 2015-16 and 915.47 tonnes in 2014-15.
At present, gold import attracts 10 per cent duty. The gems and jewellery industry along with the Commerce Ministry have time and again urged the Finance Ministry to consider cut in the import duty.
For the full year 2015-16, current account deficit stood at $22.1 billion, or 1.1 per cent of GDP, as against $26.8 billion, or 1.3 per cent, in 2014-15.