Indian banks have been unable to bring gold and silver into the country for five weeks, creating the longest import pause in recent memory. Customs has held every shipment since April 1, when the new fiscal year began, leaving jewelers in Mumbai and elsewhere scrambling for inventory. Domestic bullion prices have already edged higher as supply tightens. Retailers like Tanishq are seeing inventory gaps, delaying sales.

The holdup stems from administrative bottlenecks and ambiguous tax guidance, traders say. Without clear duty rates, banks hesitate to release funds, and customs officials lack a definitive clearance protocol. Importers face cash‑flow strain, while retailers risk price‑sensitive customers turning to alternatives such as cheaper alloys or imported watches. Small‑scale artisans, who rely on steady metal supplies for handcrafted pieces, are also feeling the pinch.

With India ranking as the world’s second‑largest bullion market, any prolonged disruption can ripple through global prices. Exporters in Switzerland and the United Arab Emirates are already reporting delayed payments, and spot gold premiums in Delhi have risen near historic highs. Policymakers must clear the tax ambiguity to restore gold imports and stabilize the market. Buyers now face a 2‑3 % premium, tightening budgets.