India has tightened duty-free gold import regulations for jewelry exporters, setting a limit of 100 kilograms per import license, the government announced in an official notice on Thursday. As the world's second-largest gold consumer, the country is taking this step to dampen demand for gold imports.
Earlier this week, the South Asian nation raised import duties on gold and silver from 6% to 15% in a bid to reduce overseas purchases of the two precious metals and alleviate pressure on foreign exchange reserves from high oil prices.
India is a major global exporter of gold jewelry. Through an advance authorization scheme, the government permits jewelry manufacturers and traders to import gold duty-free for export purposes.
The revised rules issued on Thursday stipulate that each license for gold imports is capped at 100 kilograms. Furthermore, to apply for a new license, exporters must have fulfilled at least 50% of their export obligations under previous licenses.
The notice also states that first-time applicants must undergo physical verification of their manufacturing premises by local regulatory authorities to confirm the company's genuine existence, production capacity, and operational status.
License holders are also required to submit bi-weekly reports, certified by an independent chartered accountant, detailing all gold imports and exports conducted under this scheme.
A Mumbai-based jewelry exporter commented, "The new regulations significantly increase compliance costs and requirements. The government clearly intends to curb gold imports, even if it leads to a decline in jewelry exports."
According to data compiled by the Gem and Jewellery Export Promotion Council, India's exports of plain gold and diamond-studded gold jewelry amounted to $11.36 billion in the 2025/26 fiscal year ending in March.
A precious metals trader in Kolkata noted, "The Indian government is determined to reduce gold imports and is consequently implementing a series of import barrier policies."
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