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The Centre has expanded restrictions on silver imports, requiring prior approval for more categories of silver products amid a sharp rise in overseas purchases.
The Centre has widened restrictions on silver imports by bringing grain and powder forms of the precious metal under the restricted category and requiring importers to obtain prior government authorisation, as it seeks to curb rising imports and ease pressure on the rupee.
According to a government order issued on Tuesday, imports of silver in the form of grains, powder, other forms, and silver containing 99.9% purity will now require a valid import authorisation from the Directorate General of Foreign Trade (DGFT).
The move follows a similar decision last month when the Centre placed imports of 99.9% purity silver bars and all other semi-manufactured forms of silver under the restricted category.
The latest restrictions come amid a sharp surge in silver imports. The country, the world's largest consumer of silver, spent a record $12 billion on silver imports in the financial year ended March 2026, up from $4.8 billion in the previous year. Trade ministry data also showed that silver imports jumped 157% year-on-year to $411 million in April.
The Centre has been taking steps to discourage precious metal imports as part of broader efforts to contain pressure on foreign exchange reserves amid elevated oil prices. Last month, it increased import duties on gold and silver to 15% from 6%.
Industry participants said the new rules could create uncertainty for importers.
Silver is widely used in the country across jewellery, coins, bars and industrial applications such as solar energy and electronics. Demand has also been supported by strong investor interest, with inflows into silver exchange-traded funds (ETFs) reaching record levels over the past year.
(Edited by : Prashant)
First Published:
Jun 2, 2026 8:05 PM
IST
