India’s bullion trade has come to a standstill as banks pause fresh gold and silver import orders, leaving large consignments stranded at ports due to the absence of a new government authorisation.
According to trade sources, more than five tonnes of gold and around eight tonnes of silver are currently stuck at customs, awaiting clearance. The disruption stems from a delay by the Directorate General of Foreign Trade, which typically issues an annual order listing banks authorised by the Reserve Bank of India to import bullion.
The previous directive, issued in April 2025, expired on March 31 this year. While banks expected a fresh order in early April, no update has been released so far, prompting them to halt new import deals with overseas suppliers.
India, the world’s second-largest gold consumer and biggest silver buyer, depends heavily on imports to meet domestic demand. The current pause raises concerns about potential supply shortages in the coming weeks, especially with inventories from earlier shipments steadily declining.
The move also comes as authorities attempt to ease pressure on the rupee—one of Asia’s weakest-performing currencies this year—by curbing dollar outflows. Measures have included advising refiners to limit spot dollar purchases, indirectly impacting bullion imports.
Market participants warn that continued delays could tighten supply and push up premiums, particularly after Akshaya Tritiya, one of India’s peak gold-buying festivals.
Data from the World Gold Council shows India’s gold demand fell to 710.9 metric tonnes in 2025, the lowest in five years. With imports now stalled, the market is increasingly relying on existing stock and sales from exchange-traded funds, which are already seeing redemptions. Industry voices are urging clarity. Surendra Mehta of the India Bullion and Jewellers Association stressed the need for immediate government direction, warning that prolonged uncertainty could disrupt supply chains and destabilise pricing in the domestic bullion market
