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NON-RESIDENT INDIAN (NRI) GOLD IMPORT SCHEME
The Non-Resident Indian (NRI) gold import scheme, an initiative of the Ministry of Commerce and
Industry, was launched in March 1992.
It enabled large quantities of gold bullion - for the first time in decades - to be imported officially for the domestic
market.
Under the scheme, NRI’s - when they visit India - are permitted to import up to 10 kg of gold bars and other approved
gold items as long as they have been away for not less than 6 months. Prior to January 1997, the amount was 5 kg.
Over a period of 6 years, the scheme accounted for 56% of gold bullion imported for domestic use. Its role as a
conduit for official gold imports fell away when authorised banks started importing gold bullion in November 1997 under
the Open General Licence (OGL) scheme.
Since 1992, NRI’s - on their own account or on behalf of syndicates - have imported 1,352 tonnes.
Although recorded NRI imports been nominal since 1999, less than 5 tonnes annually in recent years, the scheme
remains in operation.
DEFINITIONS
A Non-Resident Indian is defined as a passenger of Indian origin, or a passenger holding a valid Indian passport, who is
coming to India after a period of not less than 6 months of stay abroad. In the event that the passenger has visited India
during the 6 months period, short visits are ignored as long as they do not exceed a total of 30 days during the 6 month
period.
Permitted gold includes bars, medallions and jewellery, but excludes legal tender coins and gold items studded with stones
or pearls. The maximum amount refers to the gross weight of the items, not to the weight of the fine gold content.
TRANSPORTATION
NRI’s can import the gold as part of their personal luggage. Customs duty is payable by the NRI in foreign currency.
NRI GOLD IMPORTS 1992 - 2001
Year Tonnes NRI % of
gold imports *
1992 93 35
1993 116 49
1994 158 60
1995 228 59
1996 256 63
1997 398 62
Sub-total 1,249 56
1998 93 14
1999 4 < 1
2000 4 < 1
2001 2 < 1
Total 1,352 28
Source: Madhusudan Daga and other sources. * NRI % of total gold
imports for domestic use.
NRI imports accounted for 56% of gold imports between 1992 and 1997.
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AN INTRODUCTION TO THE INDIAN GOLD MARKET