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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