- Government has tightened rules for duty-free gold imports under the Advance Authorisation (AA) scheme.
- Exporters can now import only up to 100 kg of gold duty-free under one licence.
- The decision comes after the government increased gold import duty from 6% to 15%.
- First-time applicants will face physical verification of their manufacturing units by regional authorities.
- Existing exporters must complete at least 50% of previous export obligations to get a new licence.
- Companies will have to submit CA-certified import-export reports every 15 days.
New Delhi: The Central Government has introduced stricter rules for duty-free gold imports in a major move aimed at controlling India’s rising gold import bill and regulating the domestic gold market. The Directorate General of Foreign Trade (DGFT) has tightened regulations for gems and jewellery exporters importing gold under the Advance Authorisation (AA) scheme, with immediate effect.
Under the new rules, exporters will now be allowed to import a maximum of 100 kilograms of gold duty-free under a single licence. Industry experts believe the decision could increase operational costs for jewellery manufacturers and may eventually lead to higher gold prices for consumers.
The latest step comes shortly after the government increased import duty on gold from 6 percent to 15 percent. Officials say the move is intended to reduce excessive imports and improve monitoring of gold transactions across the country.
According to the revised guidelines, exporters applying for a licence for the first time will have to undergo a physical verification process. Regional authorities will inspect manufacturing units to check their production capacity and operational status before approving imports.
For exporters seeking renewal of licences, the government has made export performance mandatory. Companies will now need to fulfil at least 50 percent of their previous export obligation to qualify for a fresh import licence. Exporters failing to meet this condition may not receive permission for further duty-free imports.
The government has also strengthened monitoring mechanisms to track gold movement more closely. Licence holders will be required to submit reports every 15 days, certified by an independent Chartered Accountant (CA), detailing their gold imports and exports. Regional authorities will then send monthly consolidated reports to DGFT headquarters for nationwide monitoring.
India has witnessed a record surge in gold imports during the financial year 2025-26. Gold imports reportedly increased by more than 24 percent in value terms, reaching a historic level of 71.98 billion dollars. Switzerland remains India’s largest source of gold imports, accounting for nearly 40 percent of total imports, followed by the United Arab Emirates and South Africa.
However, the government’s decision has raised concerns within the jewellery industry. The All India Gems and Jewellery Council warned that higher import duties and stricter regulations could increase the risk of illegal gold trading and smuggling activities through the grey market.
For common consumers, the new rules could mean costlier jewellery in the coming months as businesses pass on higher import and compliance costs. Experts believe the government will continue balancing economic stability with the interests of the jewellery industry and consumers.
