Will the Government's Recent Policy Move Impede Jewellery Exports?

India Focus Monthly · Issue 124 · May 2026

Following a 9% gold import-duty hike on 13 May, India's Directorate General of Foreign Trade tightened the Advance Authorisation (AA) scheme that lets exporters import gold duty-free — imposing a 100kg cap per authorisation, issuing new licences only after 50% of export obligations are met, and adding compliance requirements. Duty Drawback Scheme exporters also face higher working-capital needs as banks now pass on IGST. Combined with US tariffs and the Middle East conflict weighing on key destinations (UAE 55%, US 22%), Metals Focus expects Indian gold jewellery exports — already an estimated 62t in 2025, down 25% y/y — to fall to their lowest level since 2015 (excluding COVID-hit 2020).