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【India】India Caps Duty-Free Gold Imports for Jewelry Exporters

Editor’s Note

**Editor’s Note:** India has imposed stricter limits on duty-free gold imports for jewelry exporters, capping them at 100 kg per license, following a sharp tariff hike on gold and silver to 15%. These measures aim to curb imports and ease pressure on foreign exchange reserves.

New Import Restrictions Announced

India on Thursday tightened rules for duty-free gold imports for jewelry exports by capping imports at 100 kilograms per license, the government said in an order, as the world’s second-largest consumer of the precious metal seeks to curb imports. The South Asian country earlier this week raised import tariffs on gold and silver to 15 percent from 6 percent as part of efforts to reduce overseas purchases of the metals and ease pressure on foreign exchange reserves from higher oil prices.

Impact on Jewelry Exporters

India is one of the world’s leading exporters of gold jewelry, and New Delhi allows manufacturers and jewelers to import gold without paying duty for export purposes under the advance authorization scheme. The government revised import rules for jewelry exporters on Thursday by capping gold imports at 100 kilograms per license and linking future licenses to fulfilment of at least 50 percent of earlier export obligations. First-time applicants will also face mandatory physical inspections of manufacturing facilities by regional authorities to verify the unit’s existence, production capacity and operational status, according to the order.

Compliance Requirements and Industry Reaction

License holders must additionally submit fortnightly reports, certified by an independent chartered accountant, detailing gold imports and exports conducted under the scheme.

“The new rules impose excessive compliance requirements. It appears the government wants to discourage gold imports, even though that could lead to lower jewelry exports,” said a Mumbai-based jewelry exporter.

India’s gold jewelry exports, including both plain and studded segments, stood at $11.36 billion in the 2025/26 fiscal year ended in March, according to data compiled by the Gem and Jewelry Export Promotion Council.

“The government seems determined to bring down gold imports. That is why it is increasing import barriers one by one,” said a Kolkata-based bullion dealer.
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⏰ Published on: May 15, 2026