October saw a 200% increase in gold imports year over year, and the trade gap grew.

October saw a 200% increase in India’s gold imports as customers purchased more of the yellow metal during the holiday month of Diwali. The government hopes that as the wedding season continues, increased commodity prices would keep demand subdued. Last month, imports of silver also experienced a significant increase.

The trade deficit increased to $41.68 billion in October 2025 due to the significant increase in imports of the two precious metals. India’s gold imports increased from $4.92 billion in October 2024 to $14.72 billion in October 2025, according to preliminary figures published by the commerce ministry on Monday. Additionally, imports of silver increased from $0.43 billion to $2.72 billion in October 2025.

“There was pent-up demand in gold as until September 2025 gold imports had been lower due to high international prices. This was reversed in October,” noted Commerce Secretary Rajesh Agrawal.

Between April and September 2025, gold imports amounted to $26.51 billion worth 299.77 tonnes as against $29.04 billion of 401.27 tonne between April and September 2024. Silver imports between April and September 2025 was 2,820.73 tonne worth $3.22 billion as against 2,290.26 billion amounting to $2.06 billion during April and September 2024.

Agrawal noted that if the October pattern in the wedding season continues, the high price of gold will increase the import cost. However, he expressed hope that the high prices will control demand. Additionally, he expressed confidence that the high increase in gold imports in October was not the result of double counting.

In the upcoming months, analysts anticipate that the demand for gold will decline. While oil imports decreased in October 2025, India’s merchandise imports increased by 16.6% YoY to an all-time high of $76.1 billion, according to Aditi Nayar, Chief Economist at ICRA. Gold imports also tripled YoY to $14.7 billion.

“An uninterrupted rise in gold prices ahead of the festive season may have led to speculative demand which may not sustain going ahead, possibly leading to some cooling in the import numbers in the ensuing months,” she said.