The massive jump in gold and silver prices during 2025-26 accounted for as much as $21.19 billion of the $48.7-billion surge recorded in merchandise trade deficit during the year. The trade deficit came in at $333.2 billion in FY26 against $284.5 billion the previous year.
The year saw investors and central banks piling on precious metals, leading to prices testing new highs. The uncertainty prevailing over most of the year due to Trump tariffs drove up the demand.
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India’s bill for the import of gold and silver stood at $84.03 billion in FY26, up 33.7% on-year. Gold imports were up 24.08% in 2025-26 to $71.98 billion in value terms, but the quantity imported saw a drop, falling 4.78% to 721.03 tonne. The surge in value was driven by a 30.29% increase in prices to $99,825 per kg from $76,617 in 2024-25.
Price Paradox
If the unit value of gold remains the same in 2025-26 as in 2024-25, the value of imports would have declined from $58.01 billion in FY24-25 to $55.24 billion in 2025-26, with a decline of 4.77%, an analysis by the ministry of commerce and industry showed.
Silver’s Triple-Digit Surge
For silver, however, the high per unit prices failed to dampen local demand. In value terms, silver imports were up 149.48% to $12.05%, even though the unit prices during the year rose by 75.77% to $1642 per kg from $934 in 2024-25.
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Despite the higher prices, India imported 7,334 tonne silver in 2025-26, up 42.03% from the previous year, “If the unit value of silver had remained the same in 2025-26, the value of imports would have increased from $4.83 billion in 2024-25 to $6.86 billion in 2025-26, instead of $12.05 billion,” the ministry note added.
TOPICSgoldSilverThis article was first uploaded on April nineteen, twenty twenty-six, at thirty-three minutes past nine in the night.