The Indian government has limited the entry of gold and silver into the country to only a select group: nominated agencies, qualified jewellers, and holders of valid Tariff Rate Quotas (TRQ) under the India–UAE Comprehensive Economic Partnership Agreement (CEPA).
The Economic Times has reported that this restriction now applies to gold and silver in unwrought, semi-manufactured, and powdered forms.
This policy tweak appears to follow reports that some importers were managing to bring almost pure gold into India through a backdoor route. By labelling it as a platinum alloy, these imports were sneaking in with reduced duties thanks to the CEPA arrangement with the UAE. In response, the government has now introduced a dedicated Harmonised System (HS) code for platinum that is 99% or more pure. Only these highly specific imports will continue to enjoy the CEPA duty benefits. Other forms — including any mix or alloy with lower platinum content — are now excluded from the benefits.
An official, quoted anonymously, pointed out that this action aligns with the Budget announcement for FY26, which aimed to clean up the customs classification of precious metals to prevent such misdeclarations.
The Union Budget for FY26 had proposed the creation of separate HS codes for metals like gold dore, silver dore, and platinum. These changes are expected to bring more clarity and accountability into the import process.
Under CEPA, India allows up to 200 metric tonnes of gold imports annually from the UAE at a slightly reduced tariff — just 1% lower — but only through the TRQ mechanism. With these new rules, the scope for misuse seems to have shrunk significantly.
Meanwhile, in a bid to rebalance trade ties, the Gem and Jewellery Export Promotion Council (GJEPC) had earlier this year urged the Commerce Ministry to consider moving some of India’s gold and silver sourcing away from Switzerland and the UK, and towards the US. Switzerland currently supplies 35% of India’s gold bars, while the UK contributes over 41.5% of silver bar imports.
Why the US? Possibly because India is running a healthy surplus in this trade relationship. In 2024 alone, India exported gems and jewellery worth $11.58 billion to the US, while imports stood at just $5.31 billion — that’s a surplus of $6.27 billion. The US also accounted for 20.28% of India’s total gem and jewellery exports and 12.99% of overall trade in the sector.
The trade council’s suggestion might also be read in light of US President Donald Trump’s repeated statements about trade imbalances. While no official action has been taken by the US yet, the proposal to diversify suppliers — and even reduce domestic import duties — appears to be a way to stay ahead of any possible tariff retaliation from Washington.