Golden April: India’s Imports Surge as Investors Seek Safe Haven

Updated: May 15, 2025 19:24

Image Source: CNBC TV18

India saw a shocking rise in gold imports in April 2025, the value rising to $3.11 billion-more than three times the amount it was in April last year. This, fueled by prices globally rising and strong investor appetite, contributed significantly towards enlarging the nation's trade deficit to a five-month high.

India, a top gold consumer in the world, witnessed a sharp increase in gold imports last month, as per the latest figures from the Commerce and Industry Ministry. The increase follows an increase in global gold prices and increased demand, affecting the country's overall trade balance.

Gold Imports Surge

The gold imports in April 2025 were $3.11 billion, 209% higher compared to $1 billion in April 2024.
The sharp increase in value is attributed to both higher global gold prices and a rise in demand, particularly as investors seek safe-haven assets amid geopolitical uncertainties.

Impact on Trade Deficit

The merchandise trade deficit widened to $19.1 billion in April 2025, compared to $14.34 billion a year earlier.
Nearly half of the increase in the trade deficit was due to the surge in gold imports, according to economists.

Broader Import Trends

Total imports for April increased by 10.25% to $54.09 billion compared to $49.06 billion in April 2024.
Petroleum, crude, and products imports also increased considerably, jumping by 20.22% to $16.46 billion.

Expert Opinion

Commerce Secretary Sunil Barthwal explained that the import trend of gold is in line with averages and is not deemed alarming, attributing the reason to the purchases by central banks globally and increased prices.
The rise in gold imports is also viewed as a reaction to asset diversification and persistent global uncertainties.

Export Performance

April goods exports were at $34.99 billion, a modest 1.09% year-on-year increase.
The top contributors to export growth were electronics, chemicals, pharmaceuticals, and petroleum products.

Market Context

Even with record-high gold prices, demand is still strong, underpinned by seasonal factors like wedding purchases and sustained investor demand.
The spurt in gold imports last month and March was preceded by a phase of muted demand, reflecting a shift in market forces.

Sources: The Indian Express, The Economic Times, World Gold Council

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