Editor’s Note
India has imposed restrictions on platinum jewellery imports until April 2026, following a surge in low-cost imports of unstudded silver jewellery from Thailand. Authorities cite misuse of FTA tax exemptions, which depressed domestic prices and threatened local employment.
The Ministry of Commerce observed a surge in imports of unstudded silver jewellery (jewellery without any gemstones such as diamonds, rubies, emeralds, etc.) from countries like Thailand between April and June 2025. Officials found that many traders were importing goods at low prices under the guise of finished jewellery, which depressed domestic prices and threatened employment. India has a Free Trade Agreement (FTA) with ASEAN countries, of which Thailand is a member. Some traders were exploiting this to misuse tax exemptions.
The government has announced restrictions on the import of certain types of platinum jewellery. This ban will remain in effect until April next year. The Directorate General of Foreign Trade (DGFT) stated in a notification that the import policy for platinum jewellery has been changed from ‘Free’ to ‘Restricted’, effective until April 30, 2026.
This decision was made following a complaint from the India Bullion and Jewellers Association (IBJA). IBJA informed the government that some bullion dealers were importing platinum alloy jewellery duty-free, even though these products contained about 90% gold and only a small amount of silver and platinum. The association described this as an import rule loophole and demanded its closure, as reported by Reuters.
Some bullion dealers and jewellers were exploiting loopholes in platinum import rules to avoid duties. According to a Mint report, they were making profits of 4% to 4.5%, amounting to several crores of rupees. The daily import volume of platinum jewellery had surged to the level of annual imports. These consignments primarily arrived at Amritsar and Delhi airports. The jewellery was later melted down to make platinum bars and sold in the domestic market, thereby evading a 6.4% duty.
This announcement comes three months after the government imposed similar restrictions on the import of certain silver jewellery. The aim was to protect domestic manufacturers and maintain employment, especially amid rising demand during the festive season. The ban on silver jewellery imports will remain in effect until March 31, 2026. India primarily imports silver jewellery from China, the UAE, and Thailand.
With this government move, platinum jewellery has been placed in the ‘Restricted’ category. This means no importer can bring such jewellery from abroad without obtaining a license from the DGFT. This step is seen as a significant initiative by the government to prevent revenue loss and protect the domestic jewellery industry.