Government imposes curbs on Silver imports - Key details

The government on Saturday has imposed new restrictions on the import of silver, under which several categories of this metal have been shifted from the "free" to the "restricted" import policy regime, according to official order.

Following the revised rules, the import of silver bars, raw silver, and semi-manufactured forms of silver (including silver in powder form) will now require mandatory government approval. Certain categories of silver imports have also been brought under the purview of the Reserve Bank of India's regulations. These changes have been implemented through amendments made to the import policy schedule under the ITC (HS) classification.

This step has been taken amidst the government's broader efforts to tighten scrutiny on the import of precious metals and to rein in the country's rising import bill.

Prior to this, the Central Government had increased the import duty on gold and silver from 6 per cent to 15 per cent. Additionally, the Directorate General of Foreign Trade (DGFT) further tightened the norms for the duty-free import of gold for gem and jewellery exporters under the Advance Authorization (AA) scheme. The limit for gold imports under the AA scheme has been fixed at 100 kilograms per license, while first-time applicants will be required to undergo a mandatory physical inspection of their manufacturing facilities prior to receiving approval.

The DGFT has also imposed stricter compliance conditions for applicants who apply repeatedly. New authorisations will now be issued only after at least 50 per cent of the export obligations under previous licenses have been fulfilled.

Furthermore, exporters who import duty-free gold are required to submit fortnightly reports, certified by a Chartered Accountant, providing detailed particulars of their import and export transactions. The Regional Authorities shall also furnish monthly consolidated reports to the DGFT Headquarters for central monitoring.

These stringent regulations have been introduced at a time when India's gold imports surged by over 24 per cent in 2025-26, reaching a record USD 71.98 billion, even as the volume of imports declined. Switzerland remained the largest source of gold imports, followed by the UAE and South Africa.