Gold surge: Imports hit record $14.72 bn in Oct; festive demand drives spike as trade deficit widens

India’s gold imports surged nearly threefold to a record $14.72 billion in October, propelled by strong festive and wedding-season demand, government data showed on Monday. Imports stood at $4.92 billion in the same month last year, PTI reported.Cumulatively, gold inflows rose 21.44 per cent to $41.23 billion in April–October, up from $34 billion a year earlier. The sharp jump also pushed India’s trade deficit to an all-time high of $41.68 billion in October.Commerce Secretary Rajesh Agrawal said the spike was largely due to festival-linked buying. “The increase in imports could be attributed to festival demand,” he noted.Gold prices are currently hovering around Rs 1.29 lakh per 10 grams in the national capital.Switzerland accounted for about 40 per cent of India’s gold imports, followed by the UAE (16 per cent) and South Africa (10 per cent). Inbound shipments from Switzerland alone rose 403.67 per cent to $5.08 billion in October. During April–October, imports from the country climbed 10.54 per cent to $15.4 billion.India is the world’s second-largest gold consumer after China, with domestic demand driven mainly by the jewellery sector. Gold forms over 5 per cent of India’s total imports.Asked whether the spike could involve double accounting—an issue that led to a data revision earlier this year—Agrawal said “no”, clarifying that the numbers accurately reflect actual inflows.Silver imports also soared, rising 528.71 per cent to $2.71 billion in October. Silver demand is being driven by its industrial applications across electronics, automobiles and pharmaceuticals.India’s current account deficit narrowed sharply to 0.2 per cent of GDP ($2.4 bn) in April–June 2025–26, compared with 0.9 per cent ($8.6 bn) a year earlier, supported by strong services exports.