Current Affairs - Economy - Discussion

India's gold imports recorded a significant decline of 39% month-on-month in May 2026, falling to $3.4 billion after the government raised the import duty on gold from 6% to 15%. The measure was introduced to reduce demand for imported gold and help conserve foreign exchange reserves. As a result, import volumes dropped sharply compared to previous months, while domestic gold prices increased. The policy also influenced investor behaviour, leading to net outflows from gold exchange-traded funds (ETFs) and a reduction in active investor accounts. The development highlights how changes in import duties can directly affect trade patterns, consumer demand, and investment activity.