India's insatiable appetite for gold is once again coming under the scanner as leading financial experts warn of its mounting pressure on the country's import bill and current account deficit (CAD). Kotak Mahindra Bank founder and veteran banker Uday Kotak has cautioned that India's total gold import bill could surge to USD 88-90 billion by the financial year 2027.
In Indian currency terms, this massive amount translates to roughly Rs 7.5 lakh crore or even more. This warning comes at a time when the country is already dealing with the dual pressures of fluctuating crude oil prices and a weakening rupee against the US dollar.
According to Kotak, in FY2026, India's current account deficit stood at around USD 25 billion (approx. Rs 2.4 lakh crore), while gold imports during the same period were nearly USD 72 billion (approx. Rs 6.9 lakh crore). He pointed out that if gold imports were excluded, India's external economic situation would look significantly stronger and more balanced.
Furthermore, Kotak highlighted that Indian households hold massive quantities of gold, much of which remains unproductive as it stays locked away in lockers rather than participating in active economic growth. He suggested forming a dedicated committee to evaluate this issue and recommended boosting domestic manufacturing of high-demand global goods to reduce reliance on external imports.
