The Centre has imposed a limit on duty-free gold imports under the advance-authorisation scheme for exporters at a maximum of 100 kg per licence. According to reports from Zee News, Kotak News Desk, and Business Standard, this move is aimed at curbing diversion of imported gold into the domestic market to make a fast buck amid concerns over the soaring import bill, which is draining precious foreign exchange reserves. The government has also linked fresh gold import permissions to export performance, making it mandatory for firms to fulfil at least 50 per cent of export obligations under earlier licences before becoming eligible for subsequent authorisations. Previously, there was no upper limit on the quantity of gold that could be imported under the scheme, marking a significant policy shift. As per the Directorate General of Foreign Trade, AA for import of gold shall be issued, subject to a maximum permissible quantity of 100 kilograms. An official from the Directorate General of Foreign Trade noted that "there is a high probability that the scheme may be misused to import large quantities immediately for price arbitrage. The new instructions aim to prevent any misuse."
Under the revised norms issued by the Directorate General of Foreign Trade, first-time applicants seeking permission to import gold will now undergo mandatory physical inspection of their manufacturing units by DGFT officials before authorisation is granted. The Directorate General of Foreign Trade has mandated that applications from first-time applicants seeking advance authorisation for gold imports will now require mandatory physical inspection of manufacturing facilities to verify the existence, capacity and operational status of the unit. Exporters importing gold under the AA scheme will now have to submit fortnightly performance reports that will need certification from an independent chartered accountant, while DGFT regional offices have been directed to send monthly updates to headquarters for centralised oversight of gold imports and exports. The AA holder will also have to submit a fortnightly performance report, duly certified by an independent chartered accountant, detailing gold imports and exports undertaken. The concerned regional authority of the directorate will submit a monthly report to the DGFT containing details regarding the issuance of advance authorisations.
The government on Wednesday raised customs duties on gold and silver imports to 15 per cent from the previous 6 per cent, while platinum import duty was revised upward to 15.4 per cent from 6.4 per cent. According to Zee Hindustan, Kotak News Desk, and Business Standard, the revised duty structure comprises a 10 per cent basic customs duty along with a 5 per cent Agriculture Infrastructure and Development Cess (AIDC) on gold and silver imports, taking the effective import tax to 15 per cent. Following the duty revision, the effective import duty on gold and silver, including cess and IGST, has increased to 18.45 per cent from 9.18 per cent earlier. The duty hike came within days of Prime Minister Narendra Modi calling for curbs on gold purchases and advocating austerity measures to reduce avoidable foreign exchange expenditure. Effective May 13, import duty on gold and silver has been increased to 15% from 6%, while duty on platinum has been raised to 15.4% from 6.4%. Consequential changes have also been made to duties on items such as gold and silver dore, coins and findings.
India's gold imports surged over 24% year-on-year to an all-time high of $71.98 billion in FY26, though shipments in volume terms dipped 4.76% to 721 tonnes. As per a public notice issued by the Directorate General of Foreign Trade (DGFT), Switzerland remained the largest source of gold imports, accounting for about 40% of the total, followed by UAE at over 16% and South Africa at about 10%. The surge in imports reflects India's position as one of the world's largest gold consumers, with demand driven largely by jewellery, investment, and festival-related purchases. India is among the world's largest consumers of gold, with demand driven largely by jewellery, investment, and festival-related purchases, making the duty hike a significant policy intervention with wide-ranging implications for consumers and investors alike. The policy changes are part of broader efforts to contain mounting pressure on India's foreign exchange reserves amid rising oil prices due to the West Asia conflict.
Indian authorities are stepping up scrutiny of gold imports routed through key trade partners, particularly the United Arab Emirates (UAE), amid concerns over certificate of origin authenticity. According to Moneycontrol, Indian authorities are in touch with agencies and officials in the UAE to probe the authenticity of certificates of origin issued for gold exports to India under the bilateral trade agreement framework. "The process of verification of the certificate of origin of the gold exported out of the UAE is ongoing," one of the people aware of the matter said, adding that agencies in both countries are in constant communication as part of the exercise. Under the India-UAE Comprehensive Economic Partnership Agreement (CEPA), only products that meet the prescribed origin criteria are eligible for tariff concessions. However, trade policy analysts and government authorities have raised concerns that precious metals imported into the UAE from other countries may undergo limited processing before being re-exported to India, leading to demands for stricter checks and tighter enforcement of origin norms.
