Gold introduces refused by about 8% to $31.72 billion in 2015-16 due to feeble global prices and are expected to keep a lid on the country's recent account shortage.
The sliding prices of the valuable metal in both worldwide and domestic markets are seen as a causative factor for the plunge.
In March, the imports dipped for the second successive month. It fell by 80.48% to $972.96 million.
The contraction in the imports helped narrow trade deficit to five-year low of $5.07 billion ,nearly Rs 33,729.4 crore last month. The deficit was at $11.39 billion (nearly Rs 75,774.8 crore) in the year-ago period.
India is the biggest importer of gold in the world and the imports mostly cater to the demand of jewellery industry.
India's in progress account shortage (CAD) narrowed to 1.3% of GDP in third quarter of the fiscal 2015-16 as against 1.5% in the similar period previous year, essentially on account of lower trade deficit.
Dip in gold imports have impacted the exports of gems and jewellery. Gems and jewellery export grew by just 4.6% in March to $3.61 billion nearly Rs 24,016.4 crore.