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A huge surge was recorded in the purchase of gold and silver in October 2025. Due to Diwali and festivals, the import of gold increased by 200 percent, due to which the country’s trade deficit also reached a record level. Now the government is hoping that rising prices will further reduce demand.
New Delhi. October 2025 proved to be historic for India’s gold and silver market, as gold imports increased by 200 percent in a year to reach $14.72 billion. The purchase of silver also increased manifold and this figure reached 2.72 billion dollars. Pre-Diwali and wedding purchases suddenly increased the demand and increased the import bill drastically. According to data released by the Commerce Ministry, this surge reflects the return of demand which was under pressure for the last several months.
Trade deficit reached 41.68 billion dollars
The sudden increase in the import of gold and silver had a direct impact on India’s trade balance. Trade deficit will increase to $41.68 billion in October 2025. Officials say that till September, gold prices were high due to which imports were low, but festival sales in October filled this shortage in one fell swoop. There was also a strong surge in silver imports, which further widened the deficit.
High prices can become a break
Commerce Secretary Rajesh Aggarwal said that the effect of this increase seen in October can be seen in the wedding season also, but continuously high prices can reduce the demand. Gold import during April-September 2025 was less than last year, but the shock in October was big. The government believes that further prices may restrict people’s purchasing, due to which the import bill may normalize.
Experts estimate – demand will cool down in the next months
According to experts, due to the continuous increase in gold prices in October, many people bought gold with a ‘buy quickly’ mentality. But this speculative demand is unlikely to last long. He estimated that gold imports may cool down in the coming months, which may also provide some relief to the country’s trade deficit.
