Indian banks have halted fresh gold and silver import orders from overseas suppliers after a formal government order authorising bullion imports was not issued on time, trade sources told Reuters.
The Directorate General of Foreign Trade (DGFT) usually issues the authorisation at the start of each financial year. The delay has left about 5 tonnes of gold and roughly 8 tonnes of silver stuck at customs, creating uncertainty for a market that depends heavily on imports to meet demand. India is the world’s second-largest gold consumer and the biggest silver buyer.
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The previous order, issued in April 2025, expired on March 31, and banks had been waiting for a fresh directive, according to Reuters.
Uncertain times
A Mumbai-based bullion dealer said that the uncertainty had led banks to stop new import orders, while another dealer said there was “no point in placing new orders when earlier consignments cannot be cleared.”
Surendra Mehta, secretary of the India Bullion and Jewellers Association, said, “There is a need to bring clarity and ensure imports resume,” adding that shortages and premiums could rise after Akshaya Tritiya if the disruption continues.
India’s gold demand in 2025 fell to 710.9 metric tonnes, the lowest in five years, while inventories from earlier imports are being drawn down and the market is relying more on exchange-traded funds that are seeing redemptions.
The report added that weaker import volumes could ease pressure on the trade deficit and support the rupee, which has been among Asia’s weakest currencies this year. A dealer in Kolkata said the government may be slowing imports to contain the trade deficit as higher oil, gas, and fertiliser costs widen the import bill.
15 banks get DGFT nod
Separately, a government notification on Friday authorised 15 leading banks, including State Bank of India, HDFC Bank, and Bank of India, to import gold and silver from April 1, 2026, to March 31, 2029, Reuters reported. The move was reported amid the same customs delay that had earlier disrupted bullion shipments.
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The Directorate General of Foreign Trade (DGFT), part of the Ministry of Commerce and Industry, typically releases an order at the start of each fiscal year naming institutions permitted by the Reserve Bank of India to import gold and silver. The last order, published in April 2025, was effective until March 31, and banks are currently awaiting a fresh DGFT directive.
