India includes gold imports from the United States as part of its strategy to reduce the growing trade deficit between the two countries. The proposed bilateral trade agreement (BTA) may also include the import of silver, platinum and precious stones by the Indian government as part of its efforts to diversify trade and integrate supply chains for mutual benefit.
The US, a leading producer of precious metals, could become a major supplier to India, which imported over $74 billion worth of these items between April 2024 and February 2025. At present, only about $5 billion of these imports come from the US. The increase in gold and metal imports from America would help to reduce the trade deficit of $34.75 billion in favour of India.
This move also follows the reciprocal tariffs imposed by the US, which has led to both sides fast-tracking BTA negotiations that are expected to be concluded by fall 2025. Precious metals are preferred over crude oil due to lower logistics costs, making them a strategic addition to India’s diversified import portfolio.
Energy imports from the US have also grown, and along with gold and other high value items, are viewed as “low-hanging fruits” for trade rebalancing.
