The Central Government has introduced stricter rules for silver imports as India continues to see record levels of silver coming into the country.
Under the new regulations, several silver products have been placed in the “restricted” category.
This means importers will now need special permission, known as import authorization, from the Directorate General of Foreign Trade (DGFT) before bringing silver into India.
What Has Changed?
The new rules will directly affect traders, jewelers, and businesses that import silver from overseas.
According to the government, DGFT approval will now be required for importing silver with a purity of 99.9% or higher. This rule covers silver in powder form, grains, semi-manufactured products, and other forms of silver.
The requirement will apply to all import channels allowed by the Reserve Bank of India (RBI), DGFT, and the India International Bullion Exchange (IIBX).
Silver Imports Have Reached Record Levels
India’s silver imports have increased sharply in recent years.
During the financial year 2025-26, the country imported silver worth a record $12 billion (around ₹1 lakh crore). In comparison, silver imports were worth $4.8 billion in the previous financial year.
This means silver imports jumped by nearly 150% in just one year.
The trend continued in April 2026, when silver imports rose 157% year-on-year to $411 million.
Why Is the Government Taking This Step?
Experts believe that large-scale silver imports can put pressure on India’s foreign exchange reserves.
To reduce this pressure, the government has been taking steps to control imports of precious metals such as gold and silver. Earlier, import duty on gold and silver was increased from 6% to 15%.
The new requirement for DGFT approval is being seen as another measure to manage rising imports and protect foreign exchange reserves.
Demand for Silver Is Growing Beyond Jewelry
Silver is no longer used only for jewelry and ornaments.
Its demand is growing rapidly in industries such as electronics, solar panels, medical equipment, automobiles, and other manufacturing sectors. As industrial demand rises, imports have also increased steadily.
India mainly imports silver from the United Arab Emirates (UAE), the United Kingdom (UK), and China.
Possible Impact on Silver Prices and Trade
Market experts say the new rules could make the import process more complicated and may temporarily affect the supply of silver.
If supplies become tighter, silver prices in the domestic market could see fluctuations. However, the government believes the move is necessary to curb unnecessary imports and safeguard the country’s foreign exchange reserves.
With DGFT approval now mandatory, silver importers will have to follow additional compliance requirements. The new regulations could influence silver trade, pricing, and the jewelry industry in the months ahead.
