New Delhi, May 11 -- Prime Minister Narendra Modi's recent appeal urging citizens to avoid non-essential gold purchases for a year has raised concerns on India's growing dependence on bullion imports and its negative impact on the country's trade balance and foreign exchange reserves.

India's gold import bill has risen sharply in recent years, increasing from around USD 36.5 billion in 2022 to nearly USD 58.9 billion in 2025.

According to the Ministry of Commerce and Industry, the country's gold imports further climbed 24 per cent in FY26 to approximately USD 72 billion, highlighting the increasing pressure on the external account as India continues to rely heavily on imported gold.

The concerns have also drawn attention to the India-U...