Government Imposes Curbs on Silver Imports After Sharp Surge in Shipments
New Delhi, May 15: The Indian government has imposed restrictions on silver imports following a sharp rise in inbound shipments of the precious metal. According to a notification issued by the Directorate General of Foreign Trade (DGFT), silver imports will now fall under the “restricted” category, meaning importers will require a government-issued licence to bring silver into the country.
The move comes just days after the Centre increased the import duty on silver from 6 per cent to 15 per cent. The government had also recently raised import duties on gold and tightened rules around gold imports.
Why the Government Took This Step
The decision follows a significant jump in silver imports during April 2026. Official data showed India’s silver imports more than doubled to approximately $411 million during the month, prompting concerns over rising inflows and their potential impact on the trade balance.
By shifting silver into the restricted category, the government aims to monitor and regulate imports more closely rather than allowing unrestricted inflows.
What “Restricted” Imports Mean
Under DGFT rules, products placed in the restricted category cannot be freely imported. Traders and businesses must first obtain approval or licences from the government before shipments are allowed into the country.
Such measures are typically introduced to control excessive imports, stabilise domestic markets, or manage foreign exchange outflows.
Impact on the Market
The higher import duty and new restrictions are expected to increase the cost of imported silver for jewellers, industrial users, and traders. Analysts believe the measures could moderate demand for imported silver in the short term while encouraging more cautious procurement by businesses.
The government’s latest actions indicate a broader push to tighten oversight of precious metal imports amid rising global prices and increasing pressure on India’s import bill.
