India restricts gold and silver imports in specific forms, allowing only nominated agencies, qualified jewellers, and tariff quota holders under the India-UAE CEPA to prevent misuse of duty benefits
In a significant policy move to curb misuse of trade benefits, India has imposed stringent restrictions on the import of gold and silver in unwrought, semi-manufactured, and powdered forms. As per the new guidelines, these precious metals can now be imported only through agencies nominated under the India-UAE Comprehensive Economic Partnership Agreement (CEPA), along with qualified jewellers and valid tariff rate quota holders.
The decision follows concerns over gold imports being disguised as platinum alloys to take advantage of the lower customs duties offered under CEPA, which was announced in the Budget for the fiscal year 2025-26. This misuse posed a risk to India’s customs revenue and threatened to undermine the intent of the trade pact.
By limiting imports to nominated entities, the government aims to increase oversight and prevent unlawful practices in the gold and silver trade. The nominated agencies will be responsible for ensuring that the imported precious metals comply with the prescribed conditions, maintaining transparency in the supply chain.
This move is also expected to protect domestic manufacturers and jewellers from unfair competition and safeguard the integrity of the bilateral trade agreement. India’s Customs and Directorate General of Foreign Trade (DGFT) will closely monitor the implementation of these rules to ensure compliance.
The restrictions reflect India’s broader strategy to tighten controls on precious metal imports amid a growing global emphasis on supply chain transparency and anti-smuggling measures. The government hopes that this step will strengthen regulatory frameworks while fostering a fair trading environment between India and the UAE.