The Indian government has announced that it restricts jewellery imports till April 30, 2026, specifically targeting certain types of platinum jewellery. Under the latest notification from the DGFT, select unstudded platinum jewellery and parts thereof have been moved from the “Free” to the “Restricted” import category, requiring prior licence for import.
What the policy says
- The import policy of certain platinum jewellery articles has been revised from “Free” to “Restricted” with immediate effect, and this status will remain until 30 April 2026.
- Specifically the move covers “unstudded articles of jewellery and parts thereof of platinum” – such items now require a licence from DGFT before import.
- The policy is part of the broader framework under the Foreign Trade (Development & Regulation) Act, 1992 and is aimed at addressing concerns of misuse and trade policy alignment.
Why has the government imposed this restriction?
1. Preventing misuse of trade-agreements
- The policy cites misuse of the duty-free/low-duty provisions under the ASEAN‑India Free Trade Agreement, where certain jewellery items imported under privileged tariff lines were being re-exported or converted into other formats, causing revenue leakage.
2. Protecting the domestic gems & jewellery sector
- With global demand for precious metal jewellery cooling, the government aims to manage import flows so as not to hurt domestic refiners, manufacturers or the value-addition chain.
3. Controlling import volumes and foreign exchange exposure
- Import of finished jewellery (especially high‐value items) affects trade balances and domestic manufacturing competitiveness; restricting it helps steer more towards local manufacturing or raw material imports.
Implications of the restriction
For importers and jewellery industry
- Importers of unstudded platinum jewellery must obtain a licence — this adds procedural overhead and could delay or increase cost of imports.
- Finished jewellery manufacturers reliant on imported stock may face input-supply pressures.
- Domestic jewellers may shift to sourcing more raw materials (bars/ingots) rather than finished pieces, or increase local manufacturing/backward integration.
For the gems & jewellery trade and exports
- While the policy is about imports, it may alter the structure of what is imported vs. what is manufactured locally and then exported.
- Export-oriented units will need to evaluate how the input cost and inventory sourcing change.
- Domestic makers might find opportunities for substituting imported finished goods with locally produced ones — boosting value-addition.
For policy & trade landscape
- The move signals that India is actively using import policy tools to regulate high-value finished goods bearing precious metals.
- It may affect trade flows from ASEAN countries or other trade partners supplying jewellery under special tariff regimes.
- It sets precedent: earlier similar restriction was placed on silver jewellery imports until March 31, 2026. The Economic Times
What to watch for going forward
- How many licences are issued, and which categories of importers are affected (eg. large vs small, retail vs export-oriented).
- Whether the restriction will be extended beyond April 30, 2026 or modified based on trade/industry feedback.
- Impact on jewellery prices domestically: if finished jewellery imports drop, will prices rise due to tighter supply?
- Changes in sourcing behaviour: Will industry shift to raw materials or local manufacturing, or shift imports via other categories?
- Effect on exports: If domestic manufacturers adapt, possibly exports may benefit from increased local value-add.
Conclusion
By implementing a targeted import restriction — the government now restricts jewellery imports till April 30, 2026 for certain platinum jewellery categories — India is aiming to safeguard its manufacturing base, prevent misuse of trade concessions and manage its trade exposures. While the move is strategic, its success will depend on effective implementation, industry adaptation and whether domestic capacity can fill the gap created by restricted imports.
