The Indian government has taken decisive action to curb platinum jewellery imports by moving them from the free to restricted category. This significant policy shift, announced on Monday, will remain effective until April 30, 2026, according to the Directorate General of Foreign Trade (DGFT).
Closing the Loophole: Why Platinum Jewellery Faces Restrictions
The decision comes after the India Bullion and Jewellers Association (IBJA) alerted authorities about a major regulatory gap. Bullion dealers had been exploiting this loophole by importing platinum-alloy jewellery duty-free, despite these products containing nearly 90% gold along with small quantities of silver and platinum.
According to industry reports, some traders were making substantial profits of 4-4.5% amounting to tens of crores by avoiding legitimate duties. The daily import volume of platinum jewellery had surged to levels equivalent to annual inbound shipments, indicating massive scale operations.
Similar Pattern Emerged in Silver Jewellery
This marks the second such restriction within three months, following similar curbs on certain silver jewellery imports that will remain effective until March 31 next year. The government observed a significant surge in unstudded silver jewellery imports from countries including Thailand, China, and the UAE during April-June 2025.
A senior government official noted that imported jewellery was entering India disguised as finished products, thereby depressing domestic prices and threatening employment in the labour-intensive silver jewellery sector. This practice was particularly concerning given India's free trade agreement with ASEAN, of which Thailand is a member.
Operational Details and Market Impact
The modus operandi involved platinum jewellery consignments landing primarily at Amritsar and Delhi airports. After clearance, these jewellery pieces were melted and converted into platinum bars, which were then sold in the domestic market, effectively evading the 6.4% duty applicable on such bars.
With platinum jewellery now in the restricted category, importers must obtain a valid license from the DGFT to bring such consignments into India. The same authorization requirement applies to silver jewellery importers, creating a uniform regulatory approach for precious metal jewellery imports.
The government's twin moves on silver and platinum jewellery imports demonstrate a clear strategy to protect domestic manufacturers and safeguard jobs in the jewellery sector, especially during periods of high seasonal demand when the industry is most vulnerable to import surges.
