India Gold Import Market -- HS 7108 Trade Data & Price Trend (Q2 2025)

India Gold Import (HS 7108) Key Takeaways

India's gold imports under HS Code 7108 in Q2 2025 reveal a market dominated by high-value unwrought gold, with 40% of import value concentrated in sub-code 71081290, reflecting a focus on raw commodity trading. The market showed resilience in April and May before a June downturn, likely due to seasonal demand shifts and regulatory changes like India-UAE CEPA compliance requirements. Supplier concentration is extreme, with financial institutions like JP Morgan handling nearly 90% of trade volume, creating reliance on a few key intermediaries. Switzerland and the UAE dominate as high-yield sources, emphasizing India's dependence on premium-grade imports. This analysis is based on cleanly processed Customs data from the yTrade database for 2025 Q2.

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 such as jewellery manufacturing, electronics, and investment-grade bullion. Global demand remains stable due to gold's dual role as a luxury good and a financial safe-haven asset.

Current Context and Strategic Position

India's gold import policy under HS Code 7108 saw significant updates in Q2 2025, including tariff restructuring and stricter compliance requirements under the India-UAE CEPA. The DGFT now mandates BIS hallmarking and GST registration for imports under the Tariff Rate Quota (TRQ) scheme [TaxGuru]. Despite a 39.2% year-on-year decline in April 2025 shipments [Volza], India remains a key global gold importer, driven by domestic consumption and industrial demand. Monitoring hs code 7108 trade data is essential to navigate evolving regulatory and market conditions.

India Gold Import (HS 7108) Price Trend

Key Observations

The India Gold Import trend for hs code 7108 value trend in Q2 2025 demonstrated resilience with April and May imports holding steady at $5.52 billion each, before a downturn to $4.01 billion in June. This performance reflects a quarter of mixed momentum, ending with a notable monthly decline.

Price and Volume Dynamics

The value trajectory exhibited significant volatility, surging to $7.30 billion in March—a sharp increase from February's $3.98 billion—before moderating to $5.52 billion in April and stabilizing in May. The sequential rise in March aligns with typical seasonal demand spikes during India's pre-monsoon wedding and festival period, which often drives inventory builds. However, the drop in June suggests a market correction, possibly due to eased demand or inventory drawdowns post-seasonal peaks.

External Context and Outlook

External factors, including recent policy shifts, explain this volatility. The restructuring of tariff items under heading 7108 effective May 1, 2025 [indiabudget.gov.in], and amendments to the India-UAE CEPA TRQ rules requiring stricter compliance like BIS hallmarking and GST registration (taxguru.in), likely prompted importers to adjust timing and volumes. These regulatory changes, coupled with a reported year-on-year decline in gold shipments, indicate that compliance burdens and trade agreement nuances are key drivers, suggesting continued import fluctuations amid evolving policy enforcement and global economic conditions.

India Gold Import (HS 7108) HS Code Breakdown

Product Specialization and Concentration

According to yTrade data for India's HS Code 7108 imports in 2025 Q2, the market is heavily concentrated on unwrought gold under sub-code 71081290, which accounts for 40% of the total import value and 56% of the weight. This sub-code, described as non-monetary gold unwrought but not powder, has a unit price of approximately 117,061 USD per kilogram, indicating a focus on high-value raw material trading. An extreme price anomaly is present in sub-code 71081310 for semi-manufactured gold, with a unit price of about 7,920,508 USD per kilogram, which is isolated from the main analysis due to its specialized, low-volume nature.

Value-Chain Structure and Grade Analysis

The remaining sub-codes can be grouped into two main categories: unwrought gold (including 71081210 and 71081200) and semi-manufactured gold (such as 71081390 and 71081300). Unwrought gold dominates with unit prices ranging from 155,538 to 359,138 USD per kilogram, suggesting a fungible bulk commodity often linked to global gold indices. Semi-manufactured items show higher differentiation but lower volume, pointing to a niche market for value-added products rather than standardized trading.

Strategic Implication and Pricing Power

Importers of unwrought gold under India's HS Code 7108 face limited pricing power due to its commodity nature, requiring focus on volume and cost efficiency. For semi-manufactured goods, higher margins are possible but demand compliance with regulations like hallmarking and GST under trade agreements such as the India-UAE CEPA [DGFT Public Notice]. Analyzing HS Code 7108 trade data reveals that strategic decisions should prioritize leveraging preferential duties while adhering to updated policy conditions (DGFT Public Notice).

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India Gold Import (HS 7108) Origin Countries

Geographic Concentration and Dominant Role

In Q2 2025, Switzerland was the top source for India's Gold imports under HS Code 7108, holding a 24.82% share of the total import value. The value share is significantly higher than the weight share (15.55%), indicating that India primarily sources higher-grade or refined Gold from Switzerland, likely in forms like pure bullion or finished products. The United Arab Emirates follows with a 12.35% value share, also showing a value-over-weight disparity, suggesting a similar trend of premium Gold imports. This concentration points to a reliance on high-value sources for India's Gold supply chain.

Origin Countries Clusters and Underlying Causes

The origin countries can be grouped into three clusters based on their share profiles. The High-Yield Cluster includes Switzerland, UAE, Ghana, and Australia, where value shares exceed weight shares, reflecting imports of premium, refined Gold often used in jewelry or investment. The Volume/Hub Cluster consists of the Dominican Republic and Chile, where weight shares dominate value shares, indicating bulk shipments of raw or lower-purity Gold, possibly from mining origins. The Transactional Cluster is led by Peru, with an extremely high frequency share (41.33%) despite moderate value and weight, suggesting frequent, small-scale Gold trades typical of active trading hubs or speculative markets.

Forward Strategy and Supply Chain Implications

India's heavy dependence on Switzerland and UAE for Gold imports under HS Code 7108 raises supply chain risks, such as price volatility or geopolitical disruptions. Diversifying sources towards volume-rich countries like the Dominican Republic could stabilize bulk supplies, while maintaining high-yield partners for quality needs. News on UAE's Tariff Rate Quota under the CEPA agreement [EY] supports its role but requires compliance with hallmarking and GST, urging importers to adapt to regulatory changes for sustained access.

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 Q2 2025, the India gold import market shows strong supplier concentration, with a small set of high-volume, frequent traders dominating the trade. According to yTrade data, the top cluster handles 89.85% of the import value and 84.74% of shipment frequency, making it the core of India's gold import suppliers. This group moves large quantities regularly, with median stats pointing to a typical trade pattern of bulk, consistent deliveries essential for commodity markets like gold.

Strategic Supplier Clusters and Trade Role

The remaining supplier groups include infrequent high-value traders, frequent low-value traders, and sporadic low-value participants, but they contribute minimally to overall trade. The dominant cluster's representative companies, such as JP Morgan Chase Bank and Australia and New Zealand Banking Group, are financial institutions, indicating an intermediated or agent-driven market for HS code 7108 suppliers. This suggests that gold imports are largely managed through banking channels, focusing on secure, high-value transactions rather than direct manufacturer relationships.

Sourcing Strategy and Vulnerability

For importers in India, this supplier structure emphasizes reliance on a few key intermediaries, which streamlines logistics but increases vulnerability to supply chain disruptions or policy changes. Strategic focus should be on maintaining strong relationships with these banks and diversifying where possible to mitigate risks. Recent news highlights regulatory shifts, such as TRQ requirements under the India-UAE CEPA that mandate BIS hallmarking and GST compliance [EY], so importers must adapt quickly to these rules to avoid duty penalties and ensure uninterrupted sourcing.

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 under HS Code 7108 is commodity-driven. Prices are set by global indices and quality grades. High concentration among Swiss and UAE suppliers creates price volatility risks. The Gold supply chain relies heavily on banking intermediaries for bulk unwrought gold. This structure prioritizes volume efficiency over pricing power. Compliance with hallmarking and GST under trade pacts like CEPA is now a core cost factor. Analyzing hs code 7108 trade data confirms that supply security depends on few financial institutions and hubs.

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

• Diversify sourcing using origin analytics. Target volume-rich countries like Dominican Republic for raw gold to reduce reliance on premium Swiss/UAE sources and stabilize bulk supply costs.
• Monitor regulatory updates for UAE TRQs. Track policy changes in real-time to ensure hallmarking and GST compliance, avoiding duty penalties under CEPA rules.
• Analyze supplier frequency data. Identify alternative banking intermediaries beyond top clusters to mitigate disruption risks from over-reliance on few partners.
• Track sub-code unit prices. Focus import plans on high-volume unwrought gold (e.g., 71081290) instead of niche semi-manufactured codes to align with commodity market dynamics.
• Use hs code 7108 trade data for cost forecasting. Model price shifts against global indices and geopolitical events to time large purchases and lock in favorable rates.

Take Action Now —— Explore India Gold Import Data

Frequently Asked Questions

Q1. What is driving the recent changes in India Gold Import 2025 Q2?

The Q2 2025 import trend showed resilience in April-May ($5.52B each) but dipped to $4.01B in June, reflecting seasonal demand spikes and subsequent corrections. Regulatory changes like India-UAE CEPA TRQ rules and tariff restructuring in May 2025 further influenced timing and volumes.

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

Switzerland (24.82% value share) and UAE (12.35%) dominate, sourcing high-grade gold, while the Dominican Republic and Chile supply bulk, lower-purity gold. Peru stands out for frequent small-scale trades (41.33% frequency share).

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

Price gaps stem from product specialization: Switzerland and UAE supply premium refined gold (high unit prices), while Dominican Republic and Chile focus on raw, lower-value bulk shipments. Semi-manufactured gold (e.g., 71081390) also commands niche premiums.

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

Prioritize relationships with dominant banking intermediaries (e.g., JP Morgan Chase) for bulk unwrought gold, while diversifying sources to mitigate reliance on Switzerland/UAE. Compliance with hallmarking and GST under India-UAE CEPA is critical to avoid penalties.

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

High-yield suppliers (Switzerland, UAE) benefit from steady demand for premium gold, but must adapt to India’s regulatory shifts. Volume-focused origins (Dominican Republic, Chile) can capitalize on bulk trade opportunities if they meet compliance standards.

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

Unwrought gold (71081290) dominates as a fungible commodity for jewelry and investment, while semi-manufactured gold serves niche markets like high-end craftsmanship or specialized industrial applications.

Detailed Monthly Report

India HS7108 Import Snapshot 2025 APR

India HS7108 Import Snapshot 2025 MAY

India HS7108 Import Snapshot 2025 JUN