The government of India has tightened import rules for gold and silver, restricting their entry to India through only nominated agencies, qualified jewellers, and valid Tariff Rate Quota (TRQ) holders under the India-UAE Comprehensive Economic Partnership Agreements (CEPA). It has also closed the backdoor entry of gold via Dubai, which some importers reportedly exploited to bring in nearly-pure gold under the guise of platinum alloy and thereby gaining access to lower import duties offered under the CEPA.
With the introduction of a specific harmonised system (HS) code for platinum with 99 per cent or higher purity, the government has tried to ensure that gold imports don’t happen in the name of platinum.
The Budget for FY26 proposed the creation of dedicated HS codes for precious metals like gold dore, silver dore, and platinum. Under CEPA, India allows the import of up to 200 metric tonnes of gold annually from the UAE at a reduced tariff — with a 1 per cent concession available via the TRQ mechanism.
In February, the Gem and Jewellery Export Promotion Council (GJEPC) had urged the Commerce Ministry to partially shift gold imports from Switzerland – which currently supplies 35 per cent of India’s gold bars – to the US to help correct India’s trade imbalance. The council proposed a similar shift in silver bar imports from the UK — which supplies 41.54 per cent — to the US.
In 2024, India exported $11.58 billion worth of gems and jewellery to the US while importing $5.31 billion, creating a $6.27 billion surplus. The US accounted for 20.28 per cent of India’s exports in this category and 12.99 per cent of overall trade.
With India and the US currently negotiating terms for a trade deal, the council has also proposed lower domestic import duties to offset possible US tariff pressure.
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