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India's Gold Imports Nearly Match Jewellery Exports in August, Narrowing Trade Deficit
M
Moneycontrol•21-09-2026, 14:04
India's Gold Imports Nearly Match Jewellery Exports in August, Narrowing Trade Deficit
- •India's gold imports in August, valued at $2.30 billion, almost equaled the country's gems and jewellery exports, also $2.30 billion, creating a rare 1:1 ratio.
- •This parity significantly narrowed the foreign-exchange gap between gold imports and jewellery exports, reducing net foreign-exchange outflow for these components.
- •The sharp decline in gold imports (down 58% year-on-year) contributed to a narrower merchandise trade deficit, which fell from $31.98 billion in July to $26.86 billion in August.
- •The shift follows an increase in gold import duty to 15% in May, though cumulative gold imports for April-August still rose 3.38% year-on-year to $17.47 billion.
- •While overall gems and jewellery exports rose 3.14% in August, studded gold jewellery exports surged 51.22%, masking pressure on cut-and-polished diamond exports.
Key Questions Answered
India imported gold worth $2.30 billion in August, while gross gems and jewellery exports also reached $2.30 billion, creating a near-exact 1:1 ratio that narrowed the foreign-exchange gap.
Following the government's increase of the effective gold import duty from 6 percent to 15 percent on May 13, gold imports in August dropped nearly 58 percent year-on-year to $2.30 billion, helping narrow India's merchandise trade deficit.
During the April-August period, cumulative gold imports rose 3.38 percent year-on-year to $17.47 billion, while gross gems and jewellery exports increased 2.58 percent to $11.47 billion, leaving a cumulative gap of about $6 billion.
