India's gold imports have dramatically decreased, reaching approximately 15 metric tonnes in April 2023, marking the lowest level in nearly 30 years. This decline is largely due to the enforcement of a 3% Integrated Goods and Services Tax (IGST) on gold imports, which has caused significant disruptions in the market. Previously, banks importing bullion were exempt from this tax, but recent confusion over updated government notifications has led to unexpected tax demands, resulting in banks halting gold consignments. In April 2025, imports stood at 35 tonnes, with an average of 60 tonnes per month anticipated for the financial year 2025-26. The drop in imports is particularly surprising given the high demand typically seen during the Akshaya Tritiya festival. Consequently, India spent only about $1.3 billion on gold this month, a stark contrast to the average of $6 billion. With banks unable to clear large quantities of gold stuck in secure vaults in Mumbai, jewelers are now relying on limited supplies from the India International Bullion Exchange (IIBX) to meet demand. Experts suggest this could be part of a strategy to curb imports, reduce the trade deficit, and support the Indian rupee.