Govt Imposes Fresh Curbs on Gold Imports Under Advance Authorisation Scheme

The government has imposed fresh restrictions on gold imports through the Advance Authorisation scheme, amid growing concerns over rising bullion imports and pressure on India’s external balance, according to a notice issued by the Directorate General of Foreign Trade today.

The DGFT has capped Advance Authorisation-based gold imports at 100 kg per licence and introduced stricter oversight measures for exporters importing gold duty-free for jewellery exports. 

The DGFT has said subsequent import authorisations would only be issued after exporters fulfil at least 50% of their export obligations under earlier licences. 

The new rules, effective immediately, also require mandatory physical inspection of manufacturing facilities for first-time applicants before authorisations are granted. 

The Advance Authorisation scheme allows duty-free import of inputs used for export production, including gold imported by jewellery exporters against export commitments.

Under the revised framework:

• First-time applicants will face mandatory factory inspections 

• Repeat licences will require completion of at least 50% of export obligations under previous authorisations 

• Importers will need to submit fortnightly performance reports certified by chartered accountants 

• Regional authorities will send monthly consolidated reports to DGFT headquarters for centralised monitoring 

The measures come days after the government sharply raised import duties on gold and silver to 15% from 5% to curb non-essential imports and reduce pressure on foreign exchange reserves amid rising oil prices and geopolitical tensions in West Asia.

India imported about $72 billion worth of gold in 2025-26, making bullion one of the country’s largest non-oil import items.

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