The Indian government has imposed stricter regulations on gold imports under the Advance Authorisation scheme, limiting imports to 100 kilograms per authorization and mandating physical inspections. This move follows an increase in import duty to 15% to prevent potential misuse for price arbitrage and to manage the trade deficit.

• 01Gold imports now capped at 100 kilograms per authorization under the Advance Authorisation scheme.
• 02Mandatory physical inspections for first-time applicants to verify manufacturing facilities.
• 03Exporters must fulfill at least 50% of previous export obligations before receiving new import authorizations.
• 04Fortnightly performance reports required from authorization holders to ensure compliance.
• 05The government aims to curb rising gold imports and support the Indian rupee.

These new regulations will likely reduce the volume of gold imports, potentially stabilizing the rupee and improving trade balance, which may affect pricing and availability for consumers.