India has capped duty-free gold imports for jewellery exporters at 100 kilograms per licence under the Advance Authorisation scheme [1].

This move targets the volume of gold entering the country to better manage domestic demand. Because India is the world’s second-largest consumer of gold, the government uses these trade mechanisms to stabilize the economy and control inflows [1, 2].

The new restrictions, announced Thursday, May 14, 2026, focus specifically on the Advance Authorisation scheme [1, 2]. Under this program, exporters previously had more flexibility in importing raw materials duty-free to produce goods for international markets. The Ministry of Commerce and Industry now limits those imports to 100 kg per licence [1].

Beyond the numerical cap, the government is tightening the issuance and monitoring conditions for these licences [1, 2]. Officials said they intend to increase oversight to ensure that gold imported under the guise of export production does not leak into the domestic retail market, a common challenge for regulators in the region [2].

Jewellery exporters must now adhere to these stricter quotas to maintain their duty-free status [1]. The measure represents a shift toward more aggressive management of gold imports to mitigate the impact on the national current account deficit [2].

“India has capped duty-free gold imports for jewellery exporters at 100 kilograms per licence.”

By limiting the amount of gold exporters can bring in without paying duties, India is attempting to reduce the total volume of precious metals entering its borders. This policy suggests a priority on reducing the trade deficit and preventing the diversion of export-grade gold into the local market, which could artificially inflate supply and disrupt domestic pricing.