Gold imports fell 81%, and mutual funds restrict fresh gold investments

Economy No. 78 17 October 2026 · 2 min read

India imported $1.80 billion of gold in September 2026, down 81.3% from $9.61 billion a year earlier. Silver imports fell 49.1% to $665 million. Gold prices actually rose 18% over the same period, from $3,668 to $4,319 an ounce. So India imported much less gold even as it became more expensive.

2 things are making gold harder to buy. First, on 13 May, the basic customs duty on gold bars doubled from 5% to 10%, making imports costlier. Second, from 15 October, HDFC stopped fresh investments and new SIPs in 2 gold-related funds, while Nippon India restricted fresh investments in its Gold Savings Fund from 16 October. Existing SIPs and withdrawals continue.

India imports most of its gold and pays for it in dollars. Higher gold imports increase demand for dollars and can widen India's trade deficit, which stood at $30.21 billion in September. Gold ETFs hold physical gold, while gold fund-of-funds invest in those ETFs. Restricting fresh investments through these funds can reduce new demand for gold. Gold ETFs received ₹4,451 crore in September 2026, down from ₹8,363 crore a year earlier.

But the restrictions do not stop everyone from buying gold. Investors with demat accounts can still buy gold ETFs directly on the stock exchange, and consumers can still buy jewellery and coins. The higher import duty makes gold more expensive rather than banning it.

India's gold imports have fallen sharply, and some mutual funds have restricted fresh investments. This could reduce 1 source of demand for imported gold, but it does not shut off gold purchases altogether.

India's gold imports each month from April 2025 to September 2026, in US$ billion: 9.61 in September 2025, a peak of 14.72 in October 2025, 12.07 in January 2026, and 1.80 in September 2026, 81% less than a year earlier. The basic duty on gold bars doubled to 10% on 13 May 2026.

Timeline: on 13 May 2026 the basic customs duty on gold bars doubled from 5% to 10%; on 15 October 2026 HDFC and Nippon India stopped new money into their gold funds of funds, while old SIPs and withdrawals run on; Dhanteras, the year's biggest gold-buying day, falls on 6 November 2026.

India's imports in September 2025 and September 2026, in US$ million: gold 9,615 to 1,800, down 81%; silver 1,307 to 665, down 49%; pearls and precious stones 1,800 to 2,158, up 20%.

India's gold import bill from September 2025 to September 2026, in US$ billion: 9.61 to start, 1.71 added by an 18% higher gold price, 9.52 taken away by buying about 84% less gold, 1.80 at the end.

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