New Licensing Rules
India has moved gold and precious metal jewelry from a free import category to a mandatory licensing regime. This policy change addresses concerns over illicit trade and a widening trade deficit with the ten-nation ASEAN bloc, comprising Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand, and Vietnam.
Trade Figures Highlight Concerns
Bilateral trade between India and ASEAN reached about $123 billion in FY 2024-25. However, India's imports from the bloc have significantly outpaced its exports. In FY 2022-23, imports totaled $87.577 million while exports were $44,000 million. This trend reflects import growth of 186% since FY 2010-11 and a growing imbalance, leading the government to seek a country-wise review of the ASEAN-India Trade in Goods Agreement (AITIGA).
Previous Action on Platinum
India previously tightened controls on precious metals to address trade anomalies. In February 2026, the government imposed import restrictions on platinum alloys blended with gold to exploit tariff differences. The current measures on gold and jewelry follow this regulatory approach to ensure fair trade and protect domestic economic interests.