India has tightened silver imports by transferring the steel to a restricted class that requires a authorities licence, shortly after elevating import responsibility on gold and silver to fifteen%. The Directorate Normal of International Commerce stated the change takes speedy impact, with exemptions for EOUs and SEZ items that don’t promote domestically.
Enterprise
The Centre has tightened guidelines for silver imports by transferring the steel to a licensed system. The change got here quickly after larger customs duties on valuable metals. Beneath the revised coverage, most inbound silver shipments now want prior authorities approval. Officers linked the steps to efforts to restrict non-essential imports and scale back overseas trade outgo.
The Directorate Normal of International Commerce stated the import coverage for silver has shifted from free to restricted. The order additionally covers silver plated with gold and platinum. It applies “with speedy impact”, as said in a notification. Objects listed as restricted can enter India solely after importers get hold of a authorities licence.
Silver import curbs and responsibility hike
The brand new curbs adopted an obligation enhance introduced on Might 13. The federal government raised import responsibility on gold and silver from 6 per cent to fifteen per cent. With 3 per cent IGST, the efficient tax burden is over 18 per cent. The upper responsibility was aimed toward limiting foreign exchange outflow by discouraging imports seen as non-essential.
The licensed regime doesn’t cowl all import channels. Imports by 100 per cent Export Oriented Items EOUs and Particular Financial Zone SEZ items are excluded. This exemption applies provided that the imported silver just isn’t bought within the home market. Different importers should meet the brand new licensing requirement earlier than shipments arrive.
Silver import curbs and import traits
Commerce ministry knowledge confirmed sharp development in silver purchases from abroad. Silver imports rose greater than two-fold to USD 411 million throughout April. In 2025-26, imports jumped about 150 per cent to USD 12 billion, pushed by larger costs. In quantity phrases, imports rose by 42 per cent to 7,334.96 tonnes within the final fiscal.
Home costs additionally stayed elevated, with silver at round Rs 2.53 lakh per kg. Business use remained large, which helps regular demand. Silver is utilized in electrical switches, photo voltaic panels, chemical catalysts and medical tools. These purposes usually make the steel necessary for manufacturing provide chains.
Silver import curbs and foreign exchange reserves
The measures got here as India’s overseas trade reserves eased from earlier peaks. Reserves fell to USD 690 billion within the week ended Might 1. This was down from the report USD 728.49 billion within the week ended February 27. The West Asia battle was cited as including strain via costlier imports and a weaker rupee.
RBI knowledge for the week ended Might 1 additionally confirmed declines in key reserve parts. India’s overseas forex property FCAs slipped to USD 551.8 billion. Gold reserves fell to USD 115 billion. The federal government’s tighter import guidelines and better duties align with efforts to handle import prices and protect foreign exchange buffers.
With inputs from PTI
