How to Start a Gold Import-Export Business in India

How To Start A Gold Import-Export Business In India

Pradnya Ranpise Posted on February 11, 2026

Overview

India's gold import-export business shows remarkable strength, recording historic imports of $14.72 billion in October 2025. The 20% rise in investment demand during Q3 2025 underscores the market's continued vitality, even in a high-price environment.

However, India regulates this business strictly through the Directorate General of Foreign Trade (DGFT) and the Reserve Bank of India (RBI). Aspiring entrepreneurs must obtain an Import Export Code (IEC) first to start legal operations and follow RBI-nominated agency rules for gold import and export business.

Can We Bring Gold from Dubai to India?

You must follow strict customs rules when you bring gold from Dubai to India. These allowances for duty-free gold jewellery are governed by Rule 5 of the Baggage Rules, 2016, issued under Section 79 of the Customs Act, 1962. This rule specifically exempts gold ornaments from customs duty up to the stated limits for passengers who have resided abroad for over one year.

Men can carry up to 20 grams with a value of ₹50,000. Women and children can carry up to 40 grams with a value of ₹1 lakh. You must declare any gold that exceeds these limits at the red channel. Customs will apply duties on the excess amount. You must show purchase invoices and purity certificates. Failure to declare can lead to penalties or seizure.

How to Start a Gold Import-Export Business?

You manage a gold import and export business under strict customs, Reserve Bank of India (RBI), and Directorate General of Foreign Trade (DGFT) rules. Gold import is a controlled activity in India, so most new businesses may source gold through authorised banks or nominated agencies instead of importing bullion independently.

Plan a business roadmap

You need to create a clear roadmap that defines your business model, target markets, and product categories. The plan should include cost calculations for purchase, security, storage, transport, and regulatory compliance, with close tracking of the gold rate to manage pricing and margin risks. Working capital arrangements are necessary for duties, margin money, and export receivables. The plan should also address risks related to gold price fluctuations, shipment delays, and payment challenges. Since gold import is restricted in India, sourcing generally depends on authorised agencies or banks.

Choose a location

Your business location should be secure and close to ports, airports, or strong logistics hubs. Facilities must support vault storage, access control, and reliable transportation. Availability of trained staff, customs brokers, and logistics partners is important. Space allocation should accommodate storage, packaging, documentation, and office functions.

Open a bank account for foreign exchange

Opening a current account with an Authorised Dealer (AD) bank is required for foreign exchange transactions. An AD bank, approved by RBI, manages inward and outward remittances for trade payments. Registration of the AD code with customs links shipments to the account. Clarifying charges, documentation, and processing timelines in advance is advisable. Gold-related transactions require strict valuation and compliance checks at the banking level.

Get legal authorisation

You must obtain an Importer Exporter Code (IEC) for all import and export activities. You'll need GST registration to obtain a valid GSTIN. Your business entity must be registered as a proprietorship, partnership, or company. Keep in mind that direct import of gold is highly restricted, and most bullion imports are handled through authorised banks, nominated agencies, or approved entities. Maintaining updated copies of licences, registrations, and tax records is essential.

Set up manufacturing and operations

You need to decide whether you'll trade jewellery, export finished products, or source through authorised suppliers. Since independent bullion import is uncommon for new businesses, you'll typically source refined gold, gold dore, or components through nominated agencies or banks. You should establish processes for purity checks, hallmarking, and quality control. Your packaging must protect gold during transit and comply with customs requirements. You must document each batch—including weight, purity, invoices, and buyer information. Maintaining traceability ensures you comply with monitoring regulations.

Establish promotions and engagement

You need to identify your customer segments, including wholesalers, retailers, and overseas buyers. You can establish communication through websites, catalogues, and verified trade listings. Your details on purity, weight, and delivery timelines must remain accurate. You should use formal channels such as email, calls, and trade platforms. Proper documentation and reliable fulfilment will support your long-term business relationships. Statements implying unrestricted import should be avoided, as procurement often depends on authorised channels.

Manage dispatch and shipment

You must prepare mandatory documents such as invoices, packing lists, and transport details. Coordination with customs brokers ensures accurate declarations and valuation entries. Gold-specific rules must be followed for imports and exports, including customs inspections and banking controls. Shipments should be tracked until delivery, with proof of receipt and payment secured. Maintaining complete records aligns with tax, compliance, and audit requirements.

Conclusion

Establishing a gold import-export business requires careful planning and strict adherence to DGFT and RBI regulations. Regular review of records ensures compliance with legal and tax obligations. Monitoring market trends helps manage price fluctuations and operational risks. Following these steps ensures smooth and legal business operations in the gold trade.

Frequently Asked Questions

How do you become a gold merchant in India?

You have to start by understanding how the gold market functions. You then complete registrations such as Importer Exporter Code (IEC) and Goods and Services Tax Identification Number (GSTIN). You build reliable connections with suppliers and buyers to support regular trade.

What rules apply to gold export and import?

The first rule is to follow licensing requirements before any movement of gold. You have to arrange secure transport and warehousing based on regulatory standards. Then, clear customs, pay applicable duties, and comply with Directorate General of Foreign Trade (DGFT) and Reserve Bank of India (RBI) rules.

How much gold does customs allow?

According to Rule 5 of the Baggage Rules, 2016, under Section 79 of the Customs Act 1962, men are allowed to carry 20 grams of gold jewellery worth up to ₹50,000, whereas women and children can carry 40 grams of gold jewellery worth up to ₹1 lakh.

What does an export licence cost?

You have to pay ₹500 as the official fee for the IEC application. Agents may charge ₹2,000 to ₹3,500 for support. Total costs usually come to around ₹4,000. Fees may vary; check DGFT portal for the latest charges.