Archive · 20 Sep 2026
Uday Kotak Urges India to Balance Gold Demand, Deficit
Uday Kotak said India buys a lot of gold from other countries.
This can make it harder for India to balance the money it earns and spends internationally.
He said India’s current account deficit was about $25 billion in FY26.
Gold imports were worth about $72 billion during that period.
Kotak expects the deficit and gold imports to grow in FY27.
He suggested creating a committee to study how people can keep meeting their demand for gold without harming the economy.
He also said India should manage government finances carefully and increase domestic production.
Kotak warned that financial markets should help businesses raise money, rather than focus mainly on trading activity.
Uday Kotak urged India to reconcile strong household gold demand with current account concerns.
India’s current account deficit was about $25 billion in FY26, while gold imports reached roughly $72 billion.
Kotak expects the deficit to widen to around $60 billion in FY27 if crude oil averages $90 a barrel.
Gold imports could rise to $88–90 billion in FY27, according to Kotak’s projections.
He also called for fiscal consolidation, stronger financial systems, domestic production, and less excessive financialisation.
- Who
- Uday Kotak, founder and director of Kotak Mahindra Bank, speaking to state finance ministers and finance secretaries.
- What
- He called for measures to balance India’s gold demand with its current account concerns.
- Where
- A conference in Delhi.
- Why
- Gold imports contribute significantly to India’s external imbalance, while households continue to hold substantial wealth in gold.
- FY26 current account deficit
- About $25 billion
- FY26 gold imports
- About $72 billion
- Projected FY27 deficit
- Around $60 billion, assuming crude oil averages $90 per barrel
- Projected FY27 gold imports
- About $88–90 billion
- Fiscal deficit
- India’s consolidated fiscal deficit remained above 7 percent
- Proposed response
- Create a committee to reconcile household gold demand with current account concerns
- Other priorities
- Fiscal consolidation, stronger financial systems, domestic production, balanced regulation, and reduced excessive financialisation