The government has tightened norms governing jewellery imports in a bid to curb misuse of trade agreements and shield the domestic industry, with the new rules coming into force immediately from April 1, 2026.
Under the revised framework, a wide range of jewellery items that were earlier classified under the “Free” import category have now been shifted to the “Restricted” list. This means importers will need to obtain a specific government licence before bringing such products into the country, marking a significant departure from the relatively liberal regime that existed until now.
The changes cover a broad spectrum of products. Almost all forms of silver jewellery—including intricate filigree work—as well as platinum jewellery, whether studded with pearls or precious stones or in plain form, will now require prior approval. The restrictions also extend to jewellery parts and components, as well as articles made from base metals that are plated or coated with gold or silver, signalling a comprehensive tightening of the import regime.
The government has implemented the new rules with immediate effect, leaving no transition window for businesses.
Importers who have already placed orders or have consignments in transit will also have to comply with the revised requirements, potentially disrupting supply chains and increasing compliance burdens in the short term.
However, certain carve-outs have been built in to ensure that export-oriented activity is not adversely impacted. Units operating in Special Economic Zones (SEZs) and Export Oriented Units (EOUs) will continue to enjoy easier access to such imports, provided the inputs are used for manufacturing goods meant for export. Imports permitted under the India-UAE trade agreement—particularly specific categories of gold—will remain exempt from the new licensing requirement, in line with treaty obligations.
“By requiring approval and not allowing any transition period, the government aims to curb misuse and strengthen control in this high-value sector,” said Manoj Mishra, Partner and Tax Controversy Management Leader at Grant Thornton Bharat.
“At the same time, exemptions for EOUs, SEZ units and imports under the India-UAE CEPA TRQ reflect a balanced approach supporting domestic manufacturing while safeguarding export competitiveness. While importers may face short-term challenges, the move is likely to promote local value addition and bring greater discipline to the sector.
The measure may also have a positive macro impact by moderating foreign exchange outflows and supporting currency stability, although its primary intent appears to be curbing FTA misuse and regulating imports,” he added.
The move is widely seen as part of a broader effort by the government to plug loopholes in free trade agreements (FTAs), where some traders have been routing imports through partner countries to take advantage of lower duties. By tightening controls, policymakers aim to discourage such practices, promote domestic value addition, and conserve foreign exchange.