India Reinforces Import Restrictions on Precious Metals

The Indian government has strengthened import controls on gold, silver, and platinum articles in an effort to prevent the exploitation of free trade agreements (FTAs). The Directorate General of Foreign Trade (DGFT) announced the new restrictions, which override any existing contracts or commitments.

Under the revised import policy, effective immediately, these curbs apply to items in Chapter 71, covering a wide range of valuable articles including natural or cultured pearls, precious and semi-precious stones, and metals. This extends the government's move in April, which first targeted jewellery imports from the 10-nation ASEAN bloc, a pact active since 2010.

Industry sources reveal that some importers have been abusing the system, exploiting duty differentials to bypass tariffs. The changes are designed to prevent such profiteering while ensuring genuine businesses are not unduly affected, with calls for streamlining licensing processes to exclude legitimate businesses from being penalized.