Government Clears Gold Import Confusion, Issues Notification to End Customs Delays as Over 5 Tonnes Stuck at Ports
The Indian government moved swiftly on Friday to resolve a policy confusion that had caused a significant backlog of gold and silver imports at customs, issuing a formal notification that authorises specific banks to import bullion for the next three years. The resolution comes at a particularly sensitive time, just days before a major Hindu festival when purchasing gold is considered highly auspicious.
What Was Stuck and Why
According to reports, more than 5 metric tonnes of gold and approximately 8 metric tonnes of silver had been held up at Indian ports without customs clearance, pending the issuance of an import authorisation order. This notification, which lists the banks permitted to import bullion, is typically issued at the start of each financial year. A delay in releasing the order for FY2026-27 created the backlog and triggered concern across the bullion and jewellery trade.
Madhavi Arora, economist at Emkay Global Financial Services, was quick to clarify the nature of the issue, describing the situation as a temporary administrative glitch rather than any deliberate policy intervention or outright ban on bullion imports.
Notification Details: Banks Authorised to Import Bullion
The government's notification, issued with the authorisation of the Reserve Bank of India, clears the path for bullion imports from April 1, 2026 to March 31, 2029. Key provisions include:
- 15 banks, including State Bank of India, HDFC Bank and Bank of India, are authorised to import both gold and silver.
- Union Bank of India and SBER Bank have been permitted to import gold only.
Surendra Mehta, National Secretary of the India Bullion and Jewellers Association, confirmed that the notification effectively resolved the import problems that had been creating anxiety across the jewellery trade ahead of the festive season.
India's Gold Imports Hit an All-Time High in FY26
The resolution of the import backlog takes on added significance given the extraordinary scale of India's appetite for gold in the recently concluded financial year. India's gold imports surged 24% to an all-time high of $71.98 billion in FY2025-26, up from $58 billion in FY2024-25. The record import figure was driven by elevated global gold prices, which remained at historically high levels through much of the year amid geopolitical uncertainty and strong safe-haven demand.
What This Means for the Jewellery Trade and Investors
The timely resolution of the customs hold-up is a significant relief for India's jewellery and bullion trade, which had been facing the prospect of physical shortages at a time of peak seasonal demand. With the notification now in place and shipments expected to clear promptly, the immediate supply concern has been addressed.
For consumers, the episode serves as a reminder of how closely India's gold market, the world's second-largest, depends on smooth policy coordination between the Finance Ministry, RBI, and customs authorities. Any prolonged delay in such authorisations can create price volatility and supply disruptions at the retail level, particularly during key festive buying seasons.
For investors tracking gold import data and the current account deficit, the record FY26 import figure of $71.98 billion will be a significant input into India's trade balance calculations. It is a factor the RBI and government will be watching carefully as they manage the external account amid ongoing pressures from elevated crude oil prices and a weakened rupee.
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