Uday Kotak Warns Of ₹8.6 Lakh Crore Gold Import Crisis For India

Veteran banker Uday Kotak has cautioned that India's gold import bill could surge to approximately ₹8.4–8.6 lakh crore by FY27, putting significant pressure on the country's external finances. Speaking at a conference on financing India's development attended by Finance Minister Nirmala Sitharaman, Kotak highlighted that India recorded a current account deficit of nearly ₹2.4 lakh crore in FY26, with gross gold imports accounting for around ₹6.9 lakh crore of that figure.

Kotak noted that excluding gold purchases, India would have posted a current account surplus. He argued that much of the gold held by Indian households remains unproductive and outside the formal economy. For FY27, if crude oil averages ₹8,600 a barrel, the current account deficit could widen to ₹5.75 lakh crore while gold imports could climb towards ₹8.6 lakh crore.

Kotak recommended forming a committee to find practical solutions to India's gold import challenge while respecting household investment preferences. He also called for stronger fiscal consolidation at the Centre and state levels, warning against excessive financialisation of capital markets that prioritises trading volumes over capital formation.