India’s gold imports near a 30-year low as tax dispute disrupts physical supply

📌 India’s gold imports in April were estimated at only around 15 metric tons, worth about $1.3 billion, near the lowest level in three decades excluding the COVID-hit period in 2020. This was sharply lower than about 35 tons in the same month last year and far below the recent average of nearly 60 tons per month.
⚠️ The main pressure came from customs demanding a 3% IGST on gold imported by banks, forcing several shipments to be delayed. The earlier delay in publishing the list of banks allowed to import gold and silver also disrupted the supply chain in the first half of April.
🔎 The impact is mixed for the market. Weaker import demand from India could ease part of the global physical buying pressure, but tighter domestic supply has pushed Indian gold premiums to their highest level in more than 10 weeks.
⏱️ The next focus is the official trade data and how the government handles the tax dispute. If the bottleneck is resolved, imports could recover during the wedding season, but if global gold prices stay high, physical demand may remain under pressure.
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