India restricts duty-free gold imports to curb misuse

New Delhi: India on Thursday imposed restrictions on gold imports a day after raising customs duties, stepping up efforts to support the rupee. The latest restrictions apply on duty-free import of the yellow metal by exporters under a special scheme- advance authorisation.

Under the revised rules, import of gold through the scheme will be capped at a maximum permissible quantity of 100 kilograms, and subsequent import approvals would only be granted after exporters fulfil at least 50% of their export obligation under earlier authorisations.

Also read: Government tightens rules for duty-free gold imports, caps quantity at 100 kg per licence


"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," said an official.

India's gold imports surged over 24% on-year to an all-time high of $71.98 billion in FY26, though shipments in volume terms dipped 4.76% to 721 tonnes. 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%.

As per a public notice issued by the Directorate General of Foreign Trade (DGFT), there will be mandatory physical inspection of manufacturing facilities before issuance for new applicants.

Also read: India raises gold, silver import duty to 15% to curb imports, support rupee amid West Asia crisis

Holders of advance authorisation will have to submit a fortnightly report on import and export while the regional offices of the DGFT would have to submit a monthly consolidated report containing details regarding the issuance of Advance Authorisations and corresponding import and export.