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Surat: The diamond and jewellery hub in Surat received a big jolt from the Central Government as the import of gold, silver and precious metals etc will be allowed without licence.
According to an important notification issued on April 1, 2026 by the Directorate General of Foreign Trade (DGFT) under the Ministry of Commerce and Industry of the Central Government, from now on, gold, silver or any of its articles will not be able to be freely imported into India. Permission will have to be obtained in the form of a license from the Central Government for the import of gold and silver. After this notification of the Central Government, there is an atmosphere of discussion and concern in the diamond and jewellery industry of Surat. According to this notification, the import policy of several precious metal jewellery items falling under ITC (HS) code 7113 has been changed from unrestricted (free) to controlled, which will directly impact the jewellery traders and manufacturers of Surat.
According to the new rules, import of jewellery especially silver, gold and platinum jewellery as well as jewellery studded with diamonds or other precious stones can now be done only after obtaining the permission of the competent authority of the Central Government, i.e. after obtaining a type of license. Before March 31, 2026, no special permission was required for import in many categories like gold, silver or platinum, but now with immediate effect from April 1, 2026, a license will be required for import of articles of gold, silver, platinum, diamonds or any other type of precious metals. This will make the import process more complicated and is likely to increase both time and cost.
Surat is known as the world-famous diamond cutting and polishing hub, and this decision of the central government has brought mixed reactions for the industrialists here. Some traders believe that restricting imports will encourage local manufacturing, as the flow of foreign finished jewellery will be reduced. As a result, local artisans will get more work and the Make in India campaign will get a boost.
But on the other hand, many industrialists are worried that this decision will create obstacles in the supply of raw materials and semi-finished jewellery. Especially those units, which depend on imported jewellery for re-export, may face difficulties. Moreover, the delay in the licensing process may also hinder the timely completion of orders.
The notification clarifies that some concessions have been given to Special Economic Zones and 100% export-oriented entities, provided that they do not sell the imported goods in the domestic market. Also, some concessions on imports under TRQ quota under India-UAE CEPA have been maintained.
The most important aspect of this decision is that it has been implemented with immediate effect and no previous agreements, letters of credit or shipment status will be taken into account. That is, traders who have already placed orders will also come under the ambit of these rules.
Seen in this way, this notification can prove to be a major game-changer for the diamond and jewellery industry of Surat. It may create difficulties in the short term but it is also being seen as an attempt to strengthen local production in the long run.
The central government has decided to restrict the import of gold and silver or any type of its articles, which was being done freely till now, with immediate effect, with effect from April 1, 2026. Market sources say that the reason behind this is to stop the continuous depreciation of the Indian currency. Currently, the Indian rupee is trading at a very low level against the US dollar. If the large-scale import of gold and silver is not stopped, the depreciation of the Indian currency will occur on a large scale and economists have also expressed the possibility that if the central government and the Reserve Bank do not take immediate action, it may reach a level of Rs. 100 against one dollar. To address this situation, the import of gold and silver has been restricted.
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