The government has restricted the import of certain categories of silver bars with immediate effect amid the ongoing West Asia conflict, according to a notification issued by the Directorate General of Foreign Trade (DGFT).
Under the revised import policy notified by the Commerce Ministry, silver bars with 99.9% purity have been moved from the “Free” category to the “Restricted” category. Other specified silver bars have also been shifted to the restricted import category.
The move aims to strengthen monitoring and regulation of silver imports into the country. The notification said the revised silver import rules have come into force with immediate effect.
Gold imports also tightened
The government had significantly increased the import duty on precious metals and also imposed a 100 kg limit on gold imports under the Advance Authorisation scheme. The scheme allows jewellery exporters to import raw materials or input materials at zero duty.
The government has also tightened the conditions for issuing and monitoring advance authorisation for gold imports. Earlier, there was no import limit on gold under the scheme.
Sharp duty hike on precious metals
The government has also sharply hiked the import duty on gold and silver to 15% to discourage purchase and trim non-essential imports in the backdrop of a ballooning import bill amid the West Asia crisis.
Effective May 13, import duty on gold and silver has been increased to 15% from 6%, and that on platinum has been raised to 15.4% from 6.4%. Consequential changes have also been made to other items such as gold/silver dore, coins, findings, etc.
PM Modi’s call for austerity
The moves came within days of Prime Minister Narendra Modi’s clarion call for curbs on gold purchases, along with other austerity measures to reduce avoidable foreign exchange expenditure.
With the West Asia conflict showing no signs of easing, global crude oil prices have surged, putting pressure on India’s import bill. The government’s response has been to tighten imports of non-essential items, including precious metals.
What this means for businesses
For silver importers, the new restrictions mean obtaining permits for 99.9% purity silver bars – a category widely used in both investment and industrial applications. The move is expected to reduce overall silver imports, helping conserve foreign exchange.
For jewellery exporters, the 100 kg limit on gold imports under the Advance Authorisation scheme introduces a new constraint. Larger exporters may need to adjust their sourcing strategies accordingly.
Broader context
India is one of the world’s largest importers of gold and silver. The government’s twin actions – duty hikes and import restrictions – send a clear signal: in times of global conflict and rising import bills, even precious metals are not immune from austerity measures.
Whether these steps will significantly reduce imports remains to be seen. But for now, silver bars of 99.9% purity are no longer freely importable – they now require a government permit.
