India's gold imports have surged by 24% to an unprecedented USD 71.98 billion in the fiscal year 2025-26, up from USD 58 billion in 2024-25. The increase is attributed to rising gold prices, which reached USD 99,825.38 per kilogram in FY26, and heightened demand from the jewellery sector, particularly during geopolitical uncertainties. However, this spike in imports has exacerbated India's trade deficit, which now stands at USD 333.2 billion, and has implications for the country's current account deficit (CAD), which rose to USD 13.2 billion in late 2025. The government has responded by imposing a 15% import duty on gold, which was reduced to 6% in the 2024-25 budget to support the domestic gems and jewellery industry. Experts have called for a review of the India-UAE Comprehensive Economic Partnership Agreement (CEPA), which has facilitated increased gold imports from Dubai, raising concerns about the trade balance as the UAE does not produce gold itself. The government is urged to tighten regulations on gold imports to protect foreign exchange reserves and manage the economic impact of rising gold demand.