Gold Import India: The Government of India has changed the rules to bring expensive metals like gold, silver and platinum to the country. The Directorate General of Foreign Trade (DGFT) issued a notification on May 19, announced to put these metals in the ‘restricted’ category. This step has been taken under Finance Act 2025.
Its purpose is to stop misuse, standardize HS codes and make the import process more transparent. It clarify who can now import these metals and on which conditions. This change has been made so that the imports of these metals can be further controlled and there is no disturbance.
Now it is not easy to order gold
Earlier, some special gold used to come to India easily. But according to the new rule, gold has 99.5% or more purity, so it has been put in the ‘restricted’ category. This means that now special permission has to be obtained from the government to order it.
This rule will apply to those gold that falls under HS code 71081210 and 71081310. Now such gold can only be asked for the agencies, which have been allowed by the Reserve Bank of India (RBI) or DGFT. Apart from this, big and reliable jewelers recognized by IFSCA can also be asked for it, but only through India International Bullion Exchange (IIBX).
Rules strict for silver too
Silver imports like gold will also be paid more attention. 99.9% or more pure silver rods used to come easily. But, under the new, it has become ‘restricted’. Now they can also be asked only through RBI’s bank, DGFT agencies or IFSCA recognized jewelers only through IIBX.
However, some types of silver (eg 71069221 and 71069229 codes) can still come easily, but RBI rules will apply to these.
Change rules for platinum too
Platinum import rules have also been changed slightly. Which is very pure platinum (99% or more), it will be able to come easily as before. But now permission has to be taken to order the rest of the platinum.
The government has also removed some old and no longer used codes, so that it is easy to understand and track things.
Why did the government change the rules?
- Stopping misuse: Due to some shortcomings in the old rules, wrong ways could be adopted in the import of these metals. The new rule has standardized HS code and limited import routes, which will reduce fraud and violations of rules.
- Increase traceability: Now import channels will be limited and imports will be done only through special agencies. In such a situation, it will be easy to find out which metal is coming to the country. With this, their movement will be better monitored.
- Promotion of domestic industry: Some experts believe that such rules can help organize and promote the domestic bullion market. Promoting platforms like IIBX is a step in this direction.
- Maintaining financial stability: Highly and uncontrolled imports of precious metals can affect the country’s trade deficit and financial stability. The government wants to control this by tightening the rules.
- Following international agreements: For example, implementing the rules under India-UAE CEPA, shows that the government is taking international trade agreements seriously and making policies accordingly.
What will be the effect on jewelers and investors?
With these new rules, no one will be able to ask for gold and silver directly, especially of better quality. If the jewelers want to get gold, they will have to take permission from IFSCA and work only through IIBX. Banks and agencies will have to get permission from the government, only then they will be able to import these metals.
If we talk about the impact on investors and consumers, then the rules are stringent, high-pure physical gold and silver availability in the market may be somewhat impact. If there is a decrease in imports, there may be some pressure on domestic prices of gold and silver. However, it will also depend on many other global factor.
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