Gold, silver imports from US in India plans

India is considering importing gold and other high-value items, including silver, platinum, and precious stones from the US to address Washington's concern of a significant trade deficit with India, two people aware of the matter said.

- Rajeev Jayaswal

NEW DELHI:

Trade diversification could be one of the ways to bridge the bilateral trade deficit with the US, they said, requesting anonymity. Under the ongoing negotiation of a bilateral trade agreement (BTA), the two partners are considering supply chain integration for mutual gains. Under BTA, concessional duties for precious metals and finished jewelry could be win-win for both, they said.

"The US is a leading producer of gold, silver, and platinum. India can easily source a sizable quantity of these valuable items from the US," one of the people said on condition of anonymity.

India's total import of precious metals, including gold and gems, crossed $74 billion in the first 11 months of the current financial year (April 2024-February 2025). In 2023-24, India imported $74.81 billion worth of these items. Of this, about $5 billion of imports were from the US.

Besides crude oil, imports of high-value items such as American gold, precious metals, and gemstones would certainly help in balancing trade between the two countries, a second person said, also on condition of anonymity. "The US is miffed by the trade deficit, which is one of the key reasons for imposing a 26% reciprocal tariff on Indian goods. The BTA is expected to suitably address this."