India Eyes US Precious Metal Imports to Narrow Trade Gap
In a strategic effort to reduce its widening trade deficit with the United States, India is exploring the possibility of importing high-value commodities such as gold, silver, platinum, and precious stones from the American market. This move is aimed at narrowing the trade gap that stood at $34.75 billion between April 2024 and February 2025.
The United States, a major producer of these precious metals, offers a reliable source for India to meet its import needs. In the financial year 2023-24, India imported roughly $74.81 billion worth of precious metals and gemstones globally, with the US contributing around $5 billion to that figure. By scaling up imports from the US, India hopes to diversify its trade sources and respond to Washington’s long-standing concerns over the trade imbalance.
Precious Metal Imports
The proposed imports are likely to gain momentum under the broader framework of a bilateral trade agreement (BTA) currently under negotiation. This agreement may offer mutual concessions, including reduced duties on the import of precious metals and finished jewellery, providing benefits to both economies. The intent is to not only bridge the trade deficit but also to enhance bilateral supply chain connectivity.
In parallel, India has been steadily increasing its imports of American crude oil, another strategic commodity aimed at reducing dependence on traditional suppliers. The inclusion of high-value imports like precious metals further complements India’s plan to create a diversified, resilient trade portfolio with the United States.
Trade Deficit Strategy
Concerns over the trade imbalance have previously led to the United States imposing a 26% reciprocal tariff on Indian goods. In response, India views the BTA as a crucial step toward resolving tariff disputes and strengthening economic ties. Government officials have indicated optimism that the agreement will be concluded swiftly, reinforcing the strong commercial relationship between the two nations.
A joint initiative called “Mission 500” has also been launched, targeting a rise in bilateral trade from the current $200 billion to $500 billion by 2030. This ambitious goal reflects the shared commitment to deepening economic cooperation and building a sustainable trade partnership.
By focusing on imports of precious metals and other strategic goods from the US, India is aiming to recalibrate its trade dynamics, address fiscal concerns, and set the stage for a more balanced and mutually beneficial economic relationship.
