India’s new gold import regulations: each pre-authorization is limited to 100 kilograms, jewelry exporters face a new round of pressure

⑴ Following last week’s separate notice raising the total import duty rate on gold and silver to 15%, India’s Directorate General of Foreign Trade has issued a new notice stipulating that under the Advance Authorization Scheme, each authorization only allows for the import of 100 kilograms of gold. Previously, this scheme permitted jewelry exporters to import gold duty-free as raw material for manufacturing export jewelry, with no quantity restrictions. The new notice further clarifies that any subsequent application for gold import authorization will only be considered after fulfilling at least 50% of the export obligation.⑵ According to data from the Gem and Jewellery Export Promotion Council of India, India’s total gold jewelry exports for the 2025-2026 fiscal year reached $11.2 billion, a year-on-year decrease of 21.7%. Institutions believe that while high gold prices are a contributing factor, the main reason for the export decline is the higher tariffs imposed by the United States. The United States has always been India’s largest importer of gems and jewelry, followed by the UAE. As Indian authorities implement these additional restrictions, it is expected that gold exports will further decline this fiscal year, dropping by at least 15% year-on-year.⑶ The core transmission mechanism of the export decline is an extended production cycle: the turnaround time from sourcing raw materials to receiving export remittances will be longer than before. This will squeeze the cash flow and order fulfillment capabilities of jewelry exporters. In the future, attention will be on whether the Indian government will adjust its restrictive measures to balance the contradiction between the trade deficit and export competitiveness, as well as the ongoing impact of U.S. tariff policy on the global jewelry supply chain.