Archive · 21 Sep 2026
Uday Kotak Warns India’s Gold Imports Could Strain Finances
Uday Kotak is worried that India may spend much more money buying gold from other countries.
He estimated the bill could reach about ₹8.6 lakh crore in FY27.
India also imports crude oil, and higher oil prices could increase financial pressure.
A weaker rupee could make these imports more expensive.
Kotak said gold purchases were a major reason India had a current account deficit in FY26.
He believes much household gold is not being used to help the productive economy.
He suggested creating a committee to find a practical solution while respecting families’ needs.
He also called for better government budgeting, investment and cooperation between national and state governments.
Uday Kotak estimated India’s gross gold import bill could reach ₹8.4–8.6 lakh crore in FY27.
He said gold imports were about ₹6.9 lakh crore in FY26, while the current account deficit was nearly ₹2.4 lakh crore.
Kotak argued India would have recorded a current account surplus in FY26 if gold purchases were excluded.
He projected the FY27 current account deficit could widen to about ₹5.75 lakh crore if crude oil averaged ₹8,600 per barrel.
Kotak urged reforms addressing household gold holdings, fiscal deficits, capital formation, imports and coordination between the Centre and states.
- Who
- Veteran banker Uday Kotak, speaking at a conference attended by Finance Minister Nirmala Sitharaman and state and Union Territory finance ministers.
- What
- Kotak warned that India’s gold import bill and current account deficit could rise sharply in FY27.
- When
- The projections concern FY27; Kotak also cited figures from FY26.
- Where
- At the Conference on Financing India’s Journey Towards Viksit Bharat in Mumbai.
- Why
- Rising gold and crude oil imports, higher oil prices and a weaker rupee could increase pressure on India’s external finances.
- Projected FY27 gold imports
- Approximately ₹8.4–8.6 lakh crore
- FY26 gold imports
- Around ₹6.9 lakh crore
- FY26 current account deficit
- Nearly ₹2.4 lakh crore
- Projected FY27 current account deficit
- Approximately ₹5.75 lakh crore under Kotak’s estimate
- Projected crude oil price assumption
- ₹8,600 per barrel
- Kotak’s proposed response
- Create a committee to examine solutions for household gold holdings and India’s external-finance challenges