In a move to tighten the norms against misuse of free trade agreements (FTAs), the Indian government imposed import curbs on all forms of gold, silver and platinum articles. According to an official notification from the Directorate General of Foreign Trade (DGFT), the newly introduced restrictions will apply irrespective of any prior contract, irrevocable letter of credit, advance payment, shipment status, or any other commitment.
Accordingly, the benefits of transitional arrangements will not be available.
"The Import Policy and Policy Condition of items ... covered under Chapter 71 ... is revised ... with immediate effect," it said.
This chapter includes natural or cultured pearls, precious or semi-precious stones, precious metals, precious metal-covered metals, articles, imitation jewelry and coins. On April 1, the government announced a ban on imports of gold, platinum and silver jewellery.
With this, all gold, silver and platinum jewellery is now banned from import.
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Traders Were Misusing FTA
The India-ASEAN FTA is being misused by some importers, an industry official told PTI. The official urged the government to ease the licensing process so that genuine participants in the initiative do not face any inconvenience.
The official said some businesses are trying to make a quick buck by exploiting tariff differences and using FTAs to avoid tariffs. He said the move was aimed at curbing the import of the precious metal in the name of unstaid jewelery from countries like Thailand.
India has signed a free trade agreement with the 10-member grouping of Southeast Asian nations (ASEAN) since
In November last year, the government imposed an import ban on certain types of platinum jewellery until April this year. A similar ban was imposed on silver jewellery from September 2025 until March this year.
With Inputs From PTI