India's gold imports plunged 62.57% to $5.51 billion in October 2026, down from $14.72 billion in the same month last year, as a sharp correction in world gold prices and a higher import duty cut overseas buying, according to Department of Commerce data released on Friday.

The monthly fall extends a steep slide in the world's second-largest gold market. Imports for April to October 2026 fell 39.9% to $24.78 billion, compared with $41.24 billion in the corresponding period of 2025, the data showed.

Three months of sharp falls

October was the third consecutive month of heavy declines. September imports fell to $1.80 billion from $9.61 billion a year earlier, while August imports dropped to $2.30 billion from $5.44 billion.

The slide is a sharp reversal from the start of the financial year, when imports grew in each of the first four months. April imports rose to $5.63 billion from $3.10 billion a year earlier, May to $3.42 billion from $2.55 billion, June to $1.97 billion from $1.84 billion, and July to $4.16 billion from $3.97 billion.

The government raised the import duty on gold and silver from 6% to 15% in May, as part of measures to moderate precious metal imports amid pressure on the rupee and foreign exchange reserves, The Hindu BusinessLine reported in October.

Prices fall below $4,000 an ounce

The decline comes as global gold prices have corrected sharply from their January 2026 record high, with the metal trading below $4,000 an ounce. Gold ended October at $3,913 an ounce, down 6.3% during the month, and is trading about 25% below its record high of $5,405 an ounce reached in January, according to the World Gold Council.

High prices have squeezed demand in India, where gold is bought heavily for jewellery, festivals and weddings, and where almost all supply is imported. The October fall came despite the festive and wedding season, normally the strongest period of the year for gold buying.

World Gold Council sees possible bottom

The World Gold Council indicated that gold may be approaching a temporary bottom, with broader economic conditions supporting the possibility of a recovery. Two of the three historical conditions associated with a rebound in prices have already been met, the council said, although elevated speculative positioning remains a concern.

Gold is trading well below its 200-day average and the US dollar has rallied into its top tier, the council's report said, adding that technical indicators and a strengthening dollar suggest the recent sell-off may be nearing exhaustion. However, speculative positions have yet to unwind sufficiently to support a sustained recovery.

Jewellery exports rise as trade deficit widens

While gold imports fell, India's gems and jewellery exports increased to $18.50 billion during April to October 2026-27, up from $16.49 billion in the corresponding period of the previous financial year.

The wider trade picture also moved sharply. India's merchandise trade deficit rose to a one-year high of $39.88 billion in October, according to a Reuters calculation based on the government data, well above the $32.25 billion economists had forecast and the $30.21 billion deficit in September. Merchandise exports rose to $49.47 billion from $44.40 billion in September, while imports rose to $89.35 billion from $74.61 billion. Trade Secretary Rajesh Agrawal said India recorded its highest-ever monthly goods exports in October.

Whether gold imports recover will depend on prices, the wedding season and the 15% import duty, which remains in place. A rebound in November would suggest buyers are returning as prices settle; a further fall would point to demand staying weak while gold remains far below its January peak. Sources: The Hindu BusinessLine and Reuters.