In a significant policy shift, the Indian government has moved to restrict the import of silver and certain jewellery articles by changing their classification from “free” to “restricted” with immediate effect. The restrictions will remain in force until 31st March 2026.
Under the revised norms, importers will now require a government license to bring in silver articles, plain (unstudded) silver jewellery, and other silver-based items.
The decision follows rising concerns over duty evasion and irregular trade practices. Officials have observed a notable surge in silver imports from Thailand — a country that is not a major silver producer — where silver jewellery was being imported under Free Trade Agreements (FTAs) to bypass higher import duties. Estimates suggest that around 40 metric tonnes of silver may have entered India through this route.
The government’s move aims to plug such loopholes, ensure fair trade, and protect domestic manufacturers from unfair competition. The restriction is expected to strengthen compliance under the Directorate General of Foreign Trade (DGFT) while promoting transparency in precious metal imports.
This step also signals India’s intent to safeguard its trade balance and maintain stability in the bullion market amid fluctuating global silver prices.
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