Government Tightens Gold-Containing Alloy Imports to Curb Smuggling
In a bid to curb hidden gold imports, India’s DGFT has restricted imports of palladium, rhodium and iridium alloys with over 1% gold and colloidal precious metal compounds—while safeguarding legitimate industrial use
image for illustrative purpose
The Directorate General of Foreign Trade (DGFT) has rolled out new import restrictions under two key notifications (No. 18/2025‑26 and No. 19/2025‑26, dated June 17, 2025). These stem from the Ministry of Commerce and Industry and target specific use cases of gold in alloys and compounds.
Alloy Restrictions (CTH 7110)
All imports of palladium, rhodium, and iridium alloys containing over 1% gold by weight are now restricted. This policy aligns with the earlier restriction on platinum alloys enacted in March 2025.
Colloidal Precious Metals (CTH 2843)
The trade status for colloidal metals—liquid suspensions of gold or silver nanoparticles—has moved from free to restricted. This addresses a loophole used for smuggling gold in “liquid” disguise.
Industry Flexibility Maintained
Alloys containing less than 1% gold remain permissible for import without restrictions.
Industrial sectors—including electronics, automotive, specialty chemicals, and electrical equipment—can still import restricted items with DGFT authorization, ensuring minimal disruption to legitimate supply chains
Strategic Intent & Market Impact
Closing Smuggling Loopholes: The policies especially target mislabelled imports routed via countries like Thailand, where gold was disguised within colloidal compounds or alloy mixtures.
Policy Alignment: The expansion of restrictions from platinum to other precious metals ensures consistent regulatory coverage across CTH 7110.
Gold Trade Trend: India’s gold imports rose by a staggering 27%, reaching US $58 billion in FY24, prompting tighter controls.
| Policy Area | Status | Conditions |
| Alloys (>1% gold) | Restricted | Import allowed with DGFT authorization for industrial use |
| Alloys (<1% gold) | Unrestricted | No changes; free import continues |
| Colloidal metals (CTH 2843) | Restricted | Requires DGFT license for industrial users |
India's recent import restrictions reflect a balanced approach: tightening controls to deter unlawful gold smuggling—especially via innovative chemical routes—while ensuring crucial industrial sectors continue to receive necessary raw materials under a regulated framework. This move reinforces the government’s vigilance against illicit trade while maintaining economic momentum in key manufacturing domains.
