Why India has restricted imports of plain silver jewelry
What's the story
The Indian government has imposed restrictions on the import of plain silver jewelry, in a bid to protect domestic manufacturers and safeguard jobs in the sector. The move comes as the country enters its peak festival and wedding season. The Directorate General of Foreign Trade (DGFT) issued a notification on Wednesday, placing plain silver jewelry under a restricted category.
New regulations
Importers will need authorization from DGFT
Under the new regulation, importers will now have to obtain a valid authorization from the DGFT to bring in consignments of plain silver jewelry. This decision comes after a spike in unstudded silver jewelry imports from certain countries, including Thailand, over the last three months (April-June 2025). The imported jewelry was mostly entering India as finished products, undercutting domestic prices and threatening employment in this labor-intensive sector.
Import increase
Imports from Thailand surged tenfold
The imports of plain silver jewelry from Thailand surged tenfold, from four tons to 40 tons during the April-June 2025 period. The share of imports from the Southeast Asian country also increased from 78% to 98%, raising suspicions of misuse. India's jewelry sector, which employs over 4.3 million people, usually sees a spike in production and retail activity during festival and wedding months.
Market impact
Restrictions to benefit domestic manufacturers
The import restrictions are expected to benefit domestic manufacturers by preventing price undercutting by imported items and ensuring that local units benefit from the higher seasonal demand. The move is also likely to provide a level-playing field for small and medium businesses while safeguarding livelihoods in the sector. Import authorizations will be granted to compliant businesses, minimizing any impact on genuine trade.
Price trends
Silver prices have surged sharply this year
Silver prices have surged sharply this year, moving almost in line with gold. On the Multi Commodity Exchange, silver futures for December delivery traded at around ₹1,34,336 per kilogram on Wednesday. This reflects an increase of about 40% so far in 2025. The government has also amended the export policy for non-basmati rice, making it mandatory for exporters to register their contracts with Agricultural and Processed Food Products Export Development Authority (APEDA) before shipment.