In a move aimed at bringing consistency and clarity to the import regime for precious metals, the Indian government has revised the import rules for certain types of gold and silver products, effective May 19, 2025.

According to a notification released by the Directorate General of Foreign Trade (DGFT), the new rules are intended to align import tariffs more closely with existing customs regulations, ensuring greater transparency and predictability for traders and stakeholders dealing in precious metals.

The revised norms permit the import of unwrought, semi-manufactured, and powdered gold under specific conditions. These categories of gold, which are crucial for the jewellery and industrial sectors, were previously subject to broader import flexibility.

Similarly, the import of certain silver products, which had previously been listed as freely importable, will now be subject to regulatory conditions, bringing them in line with other controlled items under India's trade and customs framework.

Officials from the Ministry of Commerce said the decision was taken to streamline the trade process, prevent misuse of duty structures, and support domestic manufacturing and refining industries by discouraging indiscriminate imports of precious metals.

A senior official involved in the policy change stated:

“The modifications are aimed at ensuring that there’s no mismatch between tariff entries and the policy regime. Importers now have clearer guidelines that are consistent with customs enforcement.”

This regulatory update comes amid volatile global prices for gold and silver, with traders in India — one of the world’s largest consumers of both — increasingly turning to unrefined or semi-processed forms of precious metals to cut costs and benefit from import duty differentials.

Gold imports, in particular, have been a matter of economic concern for the Indian government, given their impact on the current account deficit (CAD) and the foreign exchange reserves. India imports nearly 800–900 tonnes of gold annually, much of which is used in jewellery, investment, and religious ceremonies.

The new rules apply to gold items falling under Customs Tariff Headings (CTHs) that cover unwrought or in powder form (such as CTH 7108) and semi-manufactured forms often used by jewellers and refiners.

For silver, changes have been introduced in categories like silver unwrought (CTH 7106), silver sheets and plates, and silver powder, which had previously been imported with fewer restrictions.

The import of these items will now require adherence to certain documentary and procedural conditions, including declaration of intended usage, end-user certifications, and in some cases, prior registration or import licensing depending on the quantity and quality of metal being imported.

Industry bodies, such as the Gems and Jewellery Export Promotion Council (GJEPC), have welcomed the government's move, stating that clarity in import conditions will help the industry plan procurement more effectively and avoid regulatory uncertainty.

A spokesperson for the GJEPC noted:

“This is a positive step towards standardising import policies for precious metals. It will benefit genuine players in the market while helping authorities curb grey market operations.”

However, some concerns have been raised by smaller traders and refiners who may now face additional compliance burdens, especially for small-volume imports. Stakeholders have requested that the DGFT issue further clarification through trade circulars or FAQs to ensure that the transition to the new rules is smooth.

The government has emphasized that the new framework is part of a larger overhaul of India’s foreign trade policy, with an aim to align with global best practices, improve ease of doing business, and safeguard national interests.

This development is also significant in the context of India’s efforts to promote domestic refining and value addition, particularly through initiatives like Make in India and the India Gold Policy, which encourage companies to source, refine, and manufacture within India instead of relying heavily on imports.

By regulating the flow of raw and semi-finished precious metals, the government hopes to boost domestic jewellery manufacturing, curb round-tripping of metal imports, and discourage trade-based money laundering — a problem that has plagued the precious metals sector for years.

Traders and importers have been advised to review the updated import policy circulars carefully and ensure compliance with all customs and DGFT directives. The DGFT is expected to conduct periodic reviews and update the policy based on industry feedback and evolving trade dynamics.

In conclusion, the revised import rules for gold and silver products signal the government’s intent to maintain a robust, transparent, and strategically aligned import framework for precious metals. This regulatory shift could have long-term implications on India's trade balance, domestic refining industry, and its position in the global precious metals market.

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