Indian government tightens silver imports, follows recent gold import restrictions
What's the story
The Indian government has revised its import policy for silver, moving several categories from "free" to "restricted." The new rules mandate government approval for importing silver bars, unwrought silver, semi-manufactured forms of silver and powder form. The changes were made through amendments in the import policy schedule under the ITC (HS) classification.
Trade balance
Government's efforts to reduce import bill
These import restrictions are part of a larger government strategy to tighten control over precious metals imports and reduce the country's rising import bill. Recently, the government has also hiked import duty on gold and silver from 6% to 15%. The Directorate General of Foreign Trade (DGFT) had also tightened norms for duty-free gold imports by gems and jewelry exporters under the Advance Authorisation scheme.
Compliance measures
Stricter compliance conditions for repeat applicants
Under the new rules, gold imports under the Advance Authorisation scheme will be limited to 100kg per license. First-time applicants will have to undergo a physical inspection of their manufacturing facilities before getting approvals. The DGFT has also introduced stricter compliance conditions for repeat applicants, who must fulfill at least 50% of export obligations under previous licenses before receiving new authorizations.
Reporting requirements
Exporters required to submit fortnightly reports
Exporters importing gold duty-free will now be required to submit fortnightly reports, certified by chartered accountants, detailing their import and export transactions. Regional authorities will also have to provide monthly consolidated reports to the DGFT headquarters for central monitoring. These measures come after India's gold imports surged over 24% to a record $71.98 billion in 2025-26 despite lower import volumes.
Industry concerns
Concerns raised by industry bodies
Industry bodies such as the All India Gems and Jewellery Council have warned that higher duties and tighter restrictions could lead to gray market activity and smuggling. On the other hand, the government hopes these measures will help narrow the trade deficit, support the rupee amid external pressures, and improve compliance in precious metal imports.