India Gold Import Market -- HS 7108 Trade Data & Price Trend (Q1 2025)

India Gold Import (HS 7108) Key Takeaways

India's gold imports under HS code 7108 surged to $7.3 billion in March 2025, capping a volatile Q1 driven by policy shifts like the 20% customs duty hike. The market relies heavily on unwrought gold (71081200), with 88.7% of value controlled by a few intermediaries like ICBC Standard Bank. Nearly half of imports come from the UAE, exposing supply chain risks despite cost advantages under the India-UAE CEPA. This analysis of India Gold Import trends, based on cleanly processed Q1 2025 customs data from the yTrade database, reveals a commodity-driven trade vulnerable to regulatory and concentration risks.

India Gold Import (HS 7108) Background

What is HS Code 7108?

HS Code 7108 covers gold (including gold plated with platinum), unwrought or in semi-manufactured forms, or in powder form. This category is critical for industries like jewelry manufacturing, electronics, and investment-grade bullion, given gold's role as a store of value and industrial input. Global demand remains stable due to its dual utility in luxury goods and financial hedging.

Current Context and Strategic Position

India’s gold import policy under HS Code 7108 has seen significant updates in 2025, including a 20% basic customs duty (BCD) and 18.5% Agriculture Infrastructure and Development Cess (AIDC) effective from February 2, 2025 [Union Budget]. The India-UAE CEPA tariff rate quota (TRQ) now mandates BIS hallmarking and GST registration for importers, tightening compliance [DGFT Public Notice]. Despite a 39.2% year-on-year decline in April 2025 imports [Volza], India remains a top gold consumer, making hs code 7108 trade data vital for tracking policy impacts on India’s gold import flows. Market players must monitor regulatory shifts to navigate duty structures and TRQ allocations.

India Gold Import (HS 7108) Price Trend

Key Observations

India's gold imports under HS code 7108 in Q1 2025 demonstrated notable volatility, with import values reaching $4.23 billion in January, dipping to $3.98 billion in February, and surging to $7.30 billion in March. This resulted in a quarter total of approximately $15.51 billion, highlighting a strong end-of-quarter performance driven by external policy influences.

Price and Volume Dynamics

The India Gold Import trend for HS code 7108 showed a month-on-month decline of about 6% in February, followed by a sharp 83% increase in March. This sequential growth aligns with industry stockpiling behaviors ahead of key policy implementations, as importers likely accelerated purchases to capitalize on pre-change cost advantages, reflecting typical gold market responses to regulatory shifts.

External Context and Outlook

The volatility in Q1 imports is directly tied to recent policy updates, including a customs duty hike to 20% effective February 2, 2025 [India Budget], and revised TRQ rules under the India-UAE CEPA requiring BIS hallmarking and GST registration TaxGuru. These changes prompted importers to front-load orders in March, suggesting a cautious outlook for Q2 as adjusted compliance and cost structures take effect.

India Gold Import (HS 7108) HS Code Breakdown

Product Specialization and Concentration

According to yTrade data, India's import of HS Code 7108 in Q1 2025 is heavily concentrated on unwrought gold under sub-code 71081200, which represents nearly all trade volume and value. This product, described as non-monetary unwrought gold, has a unit price of approximately 282,549 USD per kilogram. A notable price anomaly exists for semi-manufactured gold (71081300), with a unit price exceeding 9.5 million USD per kilogram, isolating it from the primary market due to its high value and minimal volume.

Value-Chain Structure and Grade Analysis

The import composition for HS Code 7108 is split into two main categories: raw, unwrought gold and semi-manufactured gold. This structure indicates that India's gold imports are predominantly commodity-based, focused on bulk, fungible materials for domestic processing, with a minor segment of higher-value, semi-finished products. The significant price difference underscores a trade in standardized bulk commodities for the majority, alongside a specialized niche.

Strategic Implication and Pricing Power

India's heavy reliance on raw gold imports under HS Code 7108 suggests strong pricing power in bulk commodity markets but potential dependency on imported value-added goods. Policy updates, such as the India-UAE CEPA mandating BIS hallmarking and GST registration [DGFT], may drive strategic shifts towards quality compliance and supply chain diversification. Analyzing HS Code 7108 trade data highlights opportunities for domestic value addition to capture higher margins.

Check Detailed HS Code 7108 Breakdown

India Gold Import (HS 7108) Origin Countries

Geographic Concentration and Dominant Role

India's gold imports in Q1 2025 show a heavy reliance on the United Arab Emirates, which supplied 46.26% of the total import value. This share far exceeds its 27.78% weight contribution, indicating a strong preference for higher-grade or refined gold forms from this partner. The UAE's role as the dominant supplier is further emphasized by its high shipment frequency (36.90% of total transactions), suggesting a well-established and active trade channel for this commodity.

Origin Countries Clusters and Underlying Causes

Two distinct clusters emerge among India's gold suppliers. The first is a "High-Yield Cluster" featuring Switzerland and South Africa, where value shares (9.67% and 3.75% respectively) significantly outpace their weight contributions, pointing to specialized, high-purity gold shipments. The second is a "Volume/Hub Cluster" consisting of the Dominican Republic, Ghana, and Saudi Arabia, where weight shares (7.89%, 2.59%, and 2.93%) are more aligned with their value contributions, indicating these countries likely serve as sources for raw or semi-processed gold. The United States and United Kingdom fall between these clusters, showing balanced value-to-weight ratios.

Forward Strategy and Supply Chain Implications

India's gold import strategy remains heavily concentrated on UAE-sourced material, creating potential supply chain vulnerability. Recent regulatory changes under the India-UAE CEPA agreement, including mandatory BIS hallmarking and GST registration requirements [DGFT Public Notice], aim to formalize this trade relationship but also add compliance complexity. The 39.2% year-on-year decline in April 2025 shipments [Volza] suggests market volatility, emphasizing the need for diversified sourcing strategies despite the UAE's cost advantages under the preferential trade agreement.

Table: India Gold (HS 7108) Top Origin Countries (Source: yTrade)

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India Gold (HS 7108) Suppliers Analysis

Supplier Concentration and Dominance

In Q1 2025, the India Gold Import suppliers market shows high concentration, with a small core group dominating trade. According to yTrade data, the top suppliers handle 88.71% of the value and 84.01% of the frequency, indicating that most gold imports come from a few key players. This defines the typical trade as high-volume, high-value transactions centered around reliable, frequent partners.

Strategic Supplier Clusters and Trade Role

The dominant cluster includes companies like PROSTAR INTERNATIONAL FZE and ICBC STANDARD BANK PLC, which are trading and financial entities, pointing to an intermediated market where agents and banks facilitate most gold flows. Other clusters contribute smaller shares, with some handling infrequent but high-value deals or low-value, sporadic shipments. The profile of HS code 7108 suppliers suggests a commodity-driven structure where intermediaries manage bulk transactions.

Sourcing Strategy and Vulnerability

For Indian importers, this structure means relying heavily on a few intermediaries, which offers efficiency but poses risks like supply chain disruptions or price volatility. Diversifying sources could mitigate these risks. Recent policy changes, such as updated tariff rate quotas under the India-UAE CEPA requiring BIS hallmarking and GST registration [TaxGuru], reinforce the need for compliance and strategic partnerships with trusted suppliers to navigate duty adjustments and ensure smooth imports.

Table: India Gold (HS 7108) Top Suppliers List (Source: yTrade)

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Action Plan for Gold Market Operation and Expansion

Strategic Supply Chain Overview

India's Gold Import market for hs code 7108 trade data reveals a commodity-driven structure focused on raw, unwrought gold. Price is primarily driven by quality and grade variations, with high-purity sources like Switzerland commanding premium rates. Geopolitical factors, such as trade agreements and regulatory changes, also heavily influence costs, especially with the UAE's dominant role. This concentration creates supply chain implications centered on security risks, as over-reliance on a few intermediaries and regions exposes India to volatility. The Gold supply chain must prioritize domestic processing capabilities to enhance value addition while managing dependency.

Action Plan: Data-Driven Steps for Gold Market Execution and Expansion

• Diversify supplier sources using hs code 7108 trade data to identify alternative high-yield countries like Switzerland or South Africa. This reduces vulnerability to UAE supply disruptions and stabilizes costs.
• Monitor price anomalies in semi-manufactured gold segments through regular data analysis. This helps avoid overpaying for niche products and optimizes bulk purchasing strategies.
• Implement compliance checks for BIS hallmarking and GST registration as per India-UAE CEPA requirements. This ensures smooth imports under preferential duties and avoids regulatory penalties.
• Leverage supplier frequency data to negotiate better terms with core partners like PROSTAR INTERNATIONAL FZE. This strengthens relationships and secures consistent, high-volume gold flows.
• Use geographic distribution insights to develop contingency plans for sourcing from volume hubs like Ghana. This enhances supply chain resilience during geopolitical shifts or market downturns.

Take Action Now —— Explore India Gold Import Data

Frequently Asked Questions

Q1. What is driving the recent changes in India Gold Import 2025 Q1?

India's gold imports surged to $7.30 billion in March 2025, driven by stockpiling ahead of policy changes like the 20% customs duty hike and India-UAE CEPA compliance requirements.

Q2. Who are the main origin countries of India Gold (HS Code 7108) 2025 Q1?

The UAE dominated with 46.26% of import value, followed by Switzerland (9.67%) and South Africa (3.75%), reflecting a mix of refined and raw gold sources.

Q3. Why does the unit price differ across origin countries of India Gold Import?

Prices vary due to product specialization: bulk unwrought gold (71081200) trades at ~$282,549/kg, while semi-manufactured gold (71081300) exceeds $9.5 million/kg due to its niche high-value segment.

Q4. What should importers in India focus on when buying Gold?

Importers must diversify beyond the UAE-dominated supply chain and prioritize compliance with BIS hallmarking/GST rules to mitigate regulatory and concentration risks.

Q5. What does this India Gold import pattern mean for overseas suppliers?

Suppliers like the UAE benefit from stable demand, but high-value clusters (e.g., Switzerland) can leverage India’s reliance on specialized, high-purity gold for premium pricing.

Q6. How is Gold typically used in this trade flow?

India primarily imports raw, unwrought gold (71081200) for domestic processing, with a minor share of semi-manufactured high-value products (71081300) for specialized applications.

Detailed Monthly Report

India HS7108 Import Snapshot 2025 JAN

India HS7108 Import Snapshot 2025 FEB

India HS7108 Import Snapshot 2025 MAR