India's gold imports have surged to an all-time high of $71.98 billion in 2025-26, reflecting a 24% increase from the previous year. This spike is largely attributed to rising gold prices, which have jumped from $76,617.48/KG in FY25 to $99,825.38/KG in FY26. The demand for gold, primarily driven by the jewellery industry, often increases during periods of geopolitical uncertainty. In response to this situation, Prime Minister Narendra Modi has called for austerity measures, urging citizens to postpone gold purchases, limit foreign travel, and use fuel judiciously to strengthen the economy amid rising tensions in West Asia. The increase in gold imports has exacerbated India's trade deficit, which reached $333.2 billion during the same period, contributing to a current account deficit of $13.2 billion or 1.3% of GDP. The UAE has emerged as a significant source of gold imports, accounting for 28% of the total, following the implementation of the India-UAE Comprehensive Economic Partnership Agreement (CEPA). The Indian government has imposed import duties and restrictions to mitigate the impact of rising imports on the economy.