“Free” to “Restricted” Category: Centre Tightens Silver Imports, Government Approval Now Mandatory For Bullion Imports

The Central Government has shifted several categories of silver imports from the “free” to the “restricted” category, making prior approval compulsory for importers. The move comes amid a sharp rise in silver imports and concerns over pressure on India’s foreign exchange reserves.

Government of India has imposed fresh restrictions on silver imports by moving multiple categories of the precious metal from the “free” import regime to the “restricted” category with immediate effect.

Under the revised rules, importers will now require government approval or a licence before importing several forms of silver into the country.

The restrictions apply to bullion-grade silver bars with 99.9 per cent purity, unwrought silver, semi-manufactured silver and silver powder. Certain categories will also continue to remain under the regulatory oversight of the Reserve Bank of India.

The changes were introduced through amendments in the import policy schedule under the ITC (HS) classification system, which is used globally to classify tradable goods.

Until now, these categories largely fell under the “free” import system, allowing imports with routine compliance procedures. With the latest notification, shipments cannot proceed without explicit approval from authorities.

The move comes amid a sharp rise in precious metal imports and growing concerns over pressure on India’s foreign exchange reserves.

According to government trade data, silver imports into India rose nearly 149 per cent during the financial year 2025-26, reaching around $12.05 billion. Gold imports during the same period increased over 24 per cent to nearly $71.98 billion.

In April 2026 alone, silver imports reportedly surged by nearly 157 per cent compared to the same period last year.

The government recently increased import duties on gold and silver from 6 per cent to 15 per cent as part of broader measures aimed at controlling non-essential imports and conserving foreign exchange for critical sectors such as energy and fertilisers.

Officials have also urged citizens to avoid unnecessary gold purchases and non-essential foreign travel amid global uncertainty and concerns over a rising import bill.

India currently holds foreign exchange reserves of over $690 billion, which experts say is sufficient to cover nearly 10 months of imports. However, authorities appear to be adopting a cautious approach due to ongoing geopolitical tensions and volatility in global markets.

The Directorate General of Foreign Trade (DGFT) has also tightened regulations for precious metals imports under schemes used by jewellery exporters.

Under revised norms, duty-free gold imports under the Advance Authorisation scheme have been capped at 100 kg per licence. New applicants must also undergo physical inspection of manufacturing units before approvals are granted.

Industry observers say the latest silver restrictions are part of a wider government effort to strengthen oversight of bullion imports and reduce pressure on the country’s trade balance.

Disclaimer: Import policies, duties and trade regulations may change based on government notifications and economic conditions. Businesses and investors should verify official guidelines before making financial or trade-related decisions.