The central government has announced new restrictions on gold imports under the Advance Authorisation (AA) scheme.
The decision came just one day after import duty on gold, silver, and platinum was sharply increased.
The move is aimed at controlling rising gold imports and reducing pressure on India’s foreign exchange reserves during global economic uncertainty and tensions in West Asia.
Big Change for Jewellery Exporters
Under the new rules, jewellery exporters can now import only up to 100 kg of gold duty-free through the Advance Authorisation scheme.
Earlier, there was no limit on duty-free gold imports under this scheme.
The AA scheme allows exporters to import raw materials without paying customs duty if those materials are used to manufacture products meant for export.
New Rules for First-Time Applicants
The government has also introduced stricter checks for companies applying under the scheme for the first time.
According to the Directorate General of Foreign Trade (DGFT), officials will now conduct a physical inspection of manufacturing units before approval.
The inspection will check:
Whether the factory actually exists
Production capacity
Operational status of the unit
The government says these steps are being taken to prevent misuse of the scheme.
Exporters Must Now Submit Reports Every 15 Days
Jewellery exporters importing gold under the scheme will also have to submit a performance report every two weeks.
The report must:
Be certified by a chartered accountant
Include details of imports and exports
The government has also clarified that future approvals for gold imports will only be given after exporters complete at least 50% of their export obligation.
Gold Import Duty Increased Sharply
Just before these new restrictions, the government increased import duty on precious metals.
New Import Duty Rates
Gold and Silver: Increased from 6% to 15%
Platinum: Increased from 6.4% to 15.4%
After adding Integrated GST (IGST), the total effective duty on gold and silver has now risen to 18.45%, compared to 9.18% earlier.
Why Is the Government Taking These Steps?
India is the world’s second-largest gold consumer after China and depends heavily on imports to meet jewellery demand.
According to reports, India’s gold and silver imports increased by 26.7% year-on-year and reached USD 102.5 billion in FY 2025-26.
Higher imports increase pressure on India’s foreign exchange reserves and also affect the value of the rupee.
Earlier this week, the rupee touched a record low of 95.75 against the US dollar before recovering slightly after the government announced the higher import duty.
The latest steps are being seen as part of the government’s effort to control non-essential imports and manage economic pressure during global uncertainty.
