The move comes a day after the government hiked import duty on gold to 15 per cent from 6 per cent as part of a broader push to rein in a record import bill.
Also read: India raises gold, silver import duty to 15% to curb imports, support rupee amid West Asia crisis
Under the new rules, Advance Authorisation (AA) for import of gold will be subject to a ceiling of 100 kilograms per licence. First-time applicants will have to undergo a mandatory physical inspection of their manufacturing facility by the concerned regional authority before an authorisation is issued, to verify the existence, capacity, and operational status of the unit.
Repeat applicants will face a new threshold condition: any subsequent gold import authorisation will be issued only after at least 50 per cent of the export obligation prescribed under a preceding authorisation has been fulfilled. This is intended to ensure progressive compliance and prevent accumulation of unfulfilled obligations under the scheme.
Live Events
AA holders will also be required to submit a fortnightly performance report to the Regional Authority, certified by an independent Chartered Accountant, detailing gold imports and exports undertaken under the authorisation. Regional authorities, in turn, must submit a monthly consolidated report to DGFT headquarters on all AA issuances and corresponding import-export transactions, enabling centralised oversight.
The new conditions are inserted in the Handbook of Procedures 2023 and apply with immediate effect across all SIONs from M1 to M8 in the gems and jewellery product group.Also read: India raises gold import duty back to 15%: What’s behind the move
The tightening follows record gold imports in 2025-26. India’s gold imports surged over 24 per cent to an all-time high of $71.98 billion in 2025-26, though shipments in volume terms dipped 4.76 per cent to 721.03 tonnes. Switzerland remained the largest source of gold imports, accounting for about 40 per cent of the total, followed by the UAE at over 16 per cent and South Africa at about 10 per cent.
The gems and jewellery industry had flagged concerns about the duty hike, with the All India Gems and Jewellery Council warning that the increase could give rise to a grey market and spur smuggling.
Author
