The Indian government has imposed a cap of 100 kilograms on gold imports under the Advance Authorisation scheme, tightening the conditions for the issuance and monitoring of such authorisations. Previously, there was no limit on the quantity of gold that could be imported under this scheme.
New Restrictions on Gold Imports
The decision, announced on 14 May 2026, marks a significant shift in policy aimed at curbing gold imports and managing the country's trade deficit. The Advance Authorisation scheme allows duty-free import of inputs for export production, and gold has been a major commodity under this scheme.
Impact on Exporters
Exporters who rely on imported gold for manufacturing jewellery and other products will now need to adhere to the new limit. The government stated that the cap is part of broader efforts to monitor gold flows more effectively and prevent misuse of the scheme.
Industry experts believe the move could lead to a reduction in gold imports and help stabilise the current account deficit. However, some stakeholders have expressed concerns about potential disruptions to export orders if the cap proves too restrictive.
The Ministry of Commerce and Industry has not yet released detailed guidelines on how the 100 kg limit will be allocated among applicants. Further clarifications are expected in the coming weeks.
