GoldImage Credit source: pixabay
India's gold import has reached its lowest level in almost 30 years in the month of April. This month only about 15 metric tons of gold came into the country. The biggest reason behind this is the tax related dispute, which has affected the supply of gold. Actually, in India, mostly banks import gold, but this time banks have almost stopped importing gold.
The reason is that the Customs Department has suddenly started demanding 3% IGST (Integrated Goods and Services Tax) on the import of gold. Industry experts say that when IGST was implemented in 2017, banks were exempted from this 3% tax, but now suddenly this tax is being demanded, due to which banks are confused and have stopped clearing the gold consignments from customs.
According to media reports, banks did not clear almost any gold from customs in April. Although some quantity has come through India International Bullion Exchange (IIBX), but it is very less. If compared to last year, India had imported about 35 tonnes of gold in April 2025. Whereas in the financial year 2025-26, an average of 60 tonnes of gold continued to be imported every month. In such a situation, this time the figure of 15 tonnes is very low and it is the lowest level in almost three decades. However, this year in April there were also big festivals like Akshaya Tritiya, which are considered very auspicious for buying gold. Despite this, gold could not be supplied as per the demand.
According to the report, India imported gold worth about $ 1.3 billion in April, which is much less than last year's average of $ 6 billion per month. A bullion dealer in Mumbai said that banks had already ordered gold keeping Akshaya Tritiya in mind, but now it is lying in customs and vaults. It is estimated that about 8 tonnes of gold is still stored in the vault.
Experts believe that this step of the government could be to reduce the country's trade deficit and strengthen the rupee. This year, Rupee has been among the weak performing currencies in Asia, hence efforts are being made to reduce the import of gold. Apart from this, the import of semi-finished gold (gold dori) has also been affected. Refiner companies are facing difficulty in getting new import licenses, due to which their work has been affected.
Although jewelers are now trying to buy gold through IIBX, but the quantity received from there is very less, due to which the market needs are not being met. Overall, gold import in India has been badly affected due to tax disputes and delays in government processes, the impact of which can be seen on the market and prices in the future.
