India’s gold imports nearly match entire gems and jewellery exports in August

Mon Sep 21 2026

India’s gold imports nearly matched the country’s entire gems and jewellery exports in August, creating a near 1:1 ratio. Gold imports were $2.30 billion, down nearly 58% year-on-year from $5.44 billion a year earlier. The change followed the government’s increase in the effective gold import duty from 6% to 15% on May 13.

The sharp fall in gold imports contributed to a narrowing of India’s merchandise trade deficit, from $31.98 billion in July to $26.86 billion in August.

At the same time, gross gems and jewellery exports increased 3.14% year-on-year to $2.30 billion, according to GJEPC. This meant gold imports and jewellery exports were virtually equal in August.

In July, gold imports were $4.16 billion, while gems and jewellery exports were $2.35 billion, creating a gap of about $1.81 billion.

Gold imports have been volatile. Imports fell to about $1.97 billion in June, more than doubled in July, and then declined again to $2.30 billion in August. The July increase was attributed to inventory replenishment ahead of the festival season.

Despite the August decline, gold imports for April-August rose 3.38% year-on-year to $17.47 billion. Gross gems and jewellery exports during the same period increased 2.58% to $11.47 billion, leaving a cumulative gap of about $6 billion.

India’s total merchandise imports in August stood at $70.67 billion, while exports reached $43.81 billion, resulting in the $26.86 billion trade deficit. For April-August, the merchandise trade deficit was $147.09 billion, compared with $123.88 billion in the previous year.

Within gems and jewellery, studded gold jewellery exports rose 51.22% to $642.85 million in August. Cut-and-polished diamond exports remained under pressure in value terms, although shipment volumes increased 3.23% year-on-year to 13.36 lakh carats.

Other value-added categories performed better during April-August. Polished lab-grown diamond exports increased 11.75% to $533.67 million, silver jewellery exports rose 35.57% to $594.86 million, and platinum jewellery exports climbed 19.67% to $100.32 million.

India’s broader merchandise exports also strengthened, rising to $43.81 billion in August from $34.74 billion a year earlier. For April-August, exports reached $215.91 billion, up from $183.21 billion in the previous year.

Source: https://www.moneycontrol.com/