New Delhi: India's gold imports contracted in August following a sharp increase in customs duty on the precious metal, according to data released by the commerce ministry.
Gold imports dipped by 57.75 per cent to $2.3 billion in August, the data showed. However, silver imports rose by 127 per cent to $1.02 billion during the month.
The government increased import duty on precious metals from 6 per cent to 15 per cent effective May 13.
Cumulatively during April-August 2026-27, gold imports grew by 3.38 per cent to $17.47 billion, while silver imports declined 8.81 per cent to $1.74 billion.
Switzerland was the largest source of gold imports, with about a 40 per cent share, followed by the UAE (over 16 per cent) and South Africa (about 10 per cent).
Gold accounts for over 5 per cent of the country's total imports.
The total imports from Switzerland dipped 45.4 per cent to $1.28 billion in August.
India is the world's second-biggest gold consumer after China. The imports primarily help to meet demand from the jewellery industry and have implications for India's Current Account Deficit (CAD).