Titan Company, Kalyan Jewellers, other stocks in focus as Centre tightens duty-free gold imports

Synopsis

Shares of jewellery stocks such as Titan, Kalyan Jewellers, Thangamayil and Senco Gold are expected to be in focus after DGFT tightened norms for duty-free gold imports under the Advance Authorisation scheme. The move aims to strengthen compliance, curb import misuse and tighten monitoring of export-linked gold sourcing.

Shares of Titan Company, Kalyan Jewellers India, Thangamayil, Senco Gold, among others in the sector, will be in focus on Friday after the Directorate General of Foreign Trade tightened rules governing duty-free gold imports by gems and jewellery exporters.

The move comes just two days after the government raised gold import duty to 15% from 6% as part of broader efforts to contain a record import bill.

Under the revised framework, Advance Authorisation licences for duty-free gold imports will now be capped at 100 kilograms per licence. First-time applicants will also face mandatory physical inspections of their manufacturing units by regional authorities to verify the existence, operational status and production capacity of the facility before approvals are granted.

For repeat applicants, fresh import authorisations will be issued only after at least 50% of the export obligation under an earlier licence has been fulfilled. The measure is aimed at ensuring compliance and preventing exporters from accumulating pending obligations under the scheme.

Exporters operating under the Advance Authorisation route will additionally have to submit fortnightly performance reports, certified by an independent Chartered Accountant, detailing gold imports and exports undertaken through the licence. Regional authorities will also be required to send monthly consolidated reports to DGFT headquarters covering all authorisations issued and related trade activity, allowing for tighter central monitoring.

India is among the world’s largest exporters of gold jewellery, with the government allowing jewellers and manufacturers to import gold duty-free for export production under the Advance Authorisation scheme.

The tighter rules significantly raise compliance requirements as the government looks to curb gold imports. The measures could weigh on jewellery exports by slowing approval processes and increasing procedural checks. Exporters may also face higher working capital pressures and delays in sourcing gold under the revised framework.

The tightening follows a sharp jump in India’s gold imports during 2025-26. Gold imports rose more than 24% to a record $71.98 billion during the year, although import volumes declined 4.76% to 721.03 tonnes. Switzerland remained India’s biggest source of gold imports with around 40% share, followed by the UAE at over 16% and South Africa at roughly 10%.

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