Why India Is Tightening Gold And Silver Imports As Middle East Crisis Deepens

Prime Minister Narendra Modi has urged citizens to limit purchases of gold and silver amid rising global uncertainty and pressure on India's import bill, especially as tensions in West Asia push up costs.

However, government data shows that India's dependence on imported gold and silver has been rising steadily over the years, adding to trade deficit and forex depletion concerns.

Gold Imports Climb Sharply

Gold imports have surged from $9.7 billion in 2016-17 to nearly $68.9 billion in 2025-26, marking a sharp rise over the past decade, according to the Ministry of Commerce.

The increase has accelerated in recent years from $35 billion in 2022-23 to $58 billion in 2024-25 and further to a record $68.9 billion in FY26.

Exports, in contrast, remain minimal. After peaking at $2.3 billion in 2017-18, gold exports have declined to just $0.3 billion in 2025-26.

Where is India sourcing gold from?

Switzerland: $19.6 billion
UAE: $15.1 billion
Peru: $6.9 billion

Ghana and South Africa also key suppliers

Silver Imports Also See Steep Rise

Silver imports have shown an even sharper rise in a decade. From just $0.04 billion in 2016-17, imports have surged to over $11.4 billion in 2025-26, with the steepest jump coming after 2020.

 
Imports rose from $0.8 million in 2020-21 to over $5.2 billion in 2022-23 before surging further to record levels in FY26.

Silver exports remain volatile and low, falling to $0.04 million in 2025-26 after temporary spikes in previous years.

Where is India sourcing silver from?

United Kingdom: $4.8 billion
Hong Kong: $3.1 billion
United States: $1.0 billion
Switzerland, the UAE, and other suppliers

Why This Matters

Gold and silver are high-value imports paid in foreign currency, and rising demand adds pressure on forex reserves, rupee stability and the trade deficit. With oil prices rising amid West Asia tensions, the overall import burden increases further. It is against this backdrop that the government has urged restraint on non-essential purchases like gold and silver.