We import largely from Switzerland, the UAE, and South Africa. For investments, festivals, and jewelry, we require that much gold.

In the 2024-25 financial year, we bought roughly 757 tons of gold for $58 billion, and in 2025-26 till now, we have imported 721 tons of gold, but this time we have to pay more money, which is $71.98 billion (due to the lowered value of the rupee in the international market).

A reduction in the price of the rupee causes the government to spend more money buying gold, which will impact India’s foreign exchange reserves. That is why our Prime Minister encourages us to avoid buying gold for at least one year to help preserve our foreign exchange reserves.