Impact of New Duty-Free Gold Import Regulations on Indian Jewellers
Titan Company, Kalyan Jewellers, other stocks in focus as Centre tightens duty-free gold imports
The Economic Times
Image: The Economic Times
The Indian government has tightened duty-free gold import regulations for gems and jewellery exporters, capping Advance Authorisation licences at 100 kilograms and enforcing stricter compliance measures. This follows a recent increase in gold import duty to 15%, aimed at controlling the rising import bill, which could impact jewellery exports and operational costs for exporters.
- 01Advance Authorisation licences for duty-free gold imports are now capped at 100 kilograms.
- 02First-time applicants must undergo mandatory inspections of their manufacturing units.
- 03Exporters must fulfill at least 50% of previous export obligations before receiving new licences.
- 04Fortnightly performance reports certified by a Chartered Accountant are now required.
- 05India's gold imports surged to a record $71.98 billion in 2025-26 despite a decline in volumes.
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Shares of companies like Titan Company and Kalyan Jewellers will be closely monitored following the Indian government's recent tightening of duty-free gold import regulations. The Directorate General of Foreign Trade has capped Advance Authorisation licences at 100 kilograms per licence, requiring first-time applicants to undergo mandatory inspections of their manufacturing facilities. Additionally, repeat applicants must demonstrate that at least 50% of their previous export obligations have been met before receiving new authorisations. These measures come shortly after the government raised the gold import duty to 15% from 6% to manage a record import bill, which saw gold imports soar to $71.98 billion during the 2025-26 fiscal year, despite a 4.76% decline in import volumes. The new rules are expected to increase compliance burdens on exporters, potentially slowing down jewellery exports and raising operational costs due to more stringent approval processes.
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The new regulations could slow down the approval processes for jewellery exports, leading to potential delays and increased costs for exporters.
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