India caps duty-free gold imports at 100 kg

The government has imposed a limit of 100 kg on gold imports under the Advance Authorisation(AA)Scheme, which allows jewellery exporters to import raw or input materials at zero duty. In a public notice, the Directorate General of Foreign Trade (DGFT) said, Advance Authorisation for import of gold shall be issued, subject to a maximum remissible quantity of 100 kilograms. 
The DGFT has mandated a physical inspection of manufacturing facilities for all first-time applicants to verify their operational status and capacity. It added that any subsequent Advance Authorisation for the import of gold shall be considered for issuance only upon fulfilment of at least 50 per cent of the export obligation. DGFT further said that the concerned regional authority of the directorate will submit a monthly report to the DGFT containing details regarding the issuance of Advance Authorisation.
Sources said that the decision is important as there was a high probability that the scheme may be misused to import large quantities immediately and take advantage of price arbitrage. In order to prevent any possibility of misuse of the AA Scheme, these instructions are being issued, they said.
Earlier, there was no limit on gold imports under the scheme. The Advance Authorisation scheme allows the duty-free import of inputs that are incorporated into an export product. Gold and silver imports jumped 26.7 per cent year-on-year to USD 102.5 billion in FY2025-26, with their share in total imports rising to 14 per cent from 11.8 per cent in 2024-25.