Uday Kotak seeks panel as FY27 gold-import bill may near $90 billion
Kotak Mahindra Bank founder Uday Kotak has called for a high-level panel to curb India’s rising gold-import burden and bring household gold into the formal economy. Gross imports are projected at $88-90 billion in FY27, versus $72 billion in FY26.
What happened
Kotak Mahindra Bank · Uday Kotak urged a high-level panel to address rising Indian gold imports, projected at $88-90 billion in FY27, warning of current-account
Key facts
- FY27 gross gold imports projected at $88-90 billion
- FY26 current account deficit: $25 billion
- FY26 gross gold imports: $72 billion
- FY27 current account deficit could reach nearly $60 billion
- Crude oil assumption: $90 per barrel
- Consolidated fiscal deficit above 7%
Why this matters
Strategic buyers may find growing opportunity in organised gold-loan, refining, recycling and digital-gold platforms as policymakers seek to mobilise household bullion into the formal economy.
What to watch
- Monthly gold-import values and volumes, especially whether imports sustain a run rate consistent with $88-90 billion in FY27.
- India's current-account deficit, rupee movement and RBI foreign-exchange reserve trends.
- Union Budget or RBI announcements on customs duty, gold monetisation, sovereign gold bonds, bullion banking or recycling incentives.
- Domestic gold premium versus international landed price; a widening premium would signal supply restrictions or tight formal channels.
- Jewellery demand during Akshaya Tritiya, the wedding season and Diwali, including organised-versus-unorganised market share.
- Growth in recycled-gold supply, gold-loan collateral volumes and deposits under formal gold mobilisation schemes.
- Constitute a finance-ministry, RBI, commerce-ministry and jewellery-industry panel focused on household-gold mobilisation and import substitution.
- Rework gold monetisation schemes with simpler onboarding, clearer returns, trusted custody and lower transaction friction for households.
- Expand incentives and standards for domestic gold recycling, refining and hallmark-linked traceability.
- Increase reporting and compliance scrutiny across bullion imports, jewellery transactions and unorganised trade channels.
- Organised jewellery retailers increase recycled-gold exchange offers, lightweight collections and transparent buyback programmes.