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New import rules restricting gold alloyed precious metals may boost pharma imports
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Shardul Nautiyal, Mumbai
June 19 , 2025
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In a strategic shift that could benefit India’s pharmaceutical sector, the ministry of commerce and industry has amended the import policy for certain precious metal alloys like palladium, rhodium, and iridium containing gold. As per Notification No. 18/2025-26 issued by the Directorate General of Foreign Trade (DGFT), imports of palladium, rhodium, and iridium, specifically when alloyed with more than 1% gold by weight, will now be restricted, though imports of the pure metals remain free.
These changes, made under Chapter 71 of the ITC (HS) 2022 classification, are effective immediately and mark a significant regulatory update in India’s foreign trade policy. Rhodium, palladium, and iridium, in unwrought or powder form, have specific uses in the pharmaceutical industry, primarily as catalysts in chemical reactions.
Precious metal alloys that contain gold — particularly when imported under more liberal policies — can sometimes be misclassified to exploit duty arbitrage. By restricting imports of such alloys with over 1% gold content, the government closes a loophole that has occasionally been used to funnel high-value metals under false declarations, especially in industries like chemicals and pharmaceuticals where trace elements are used.
The new restrictions will likely reduce compliance risks for legitimate pharma companies importing these critical metals for catalytic or laboratory use, ensuring a level playing field.
With stricter control on imports of complex alloys, domestic pharma manufacturers might be encouraged to explore indigenous alternatives or invest in cleaner and more transparent sourcing of required catalytic materials like palladium and rhodium especially for drug synthesis and hydrogenation processes. This supports India's “Make in India” and Atmanirbhar Bharat (self-reliant India) initiatives.
The amendment also brings clarity to customs and trade processes, reducing ambiguity around the classification of critical materials. For pharmaceutical importers who rely on precise chemical and metallurgical compositions, this enhances predictability in supply chains and simplifies compliance.
“By distinguishing between pure precious metals and their gold-rich alloys, the policy strengthens trade integrity without hampering access to essential raw materials,” according to an industry expert.
The amended policy carries significant implications for sectors like pharmaceuticals that rely on precision, purity, and policy stability. By tightening import norms on gold-alloyed precious metals, the government not only strengthens trade controls but also opens up space for more strategic and necessary imports particularly in the pharma sector.
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