India has tightened import regulations for select categories of silver by moving them from the “Free” category to the “Restricted” category under the country’s import policy framework. The move is expected to impact segments of the domestic bullion market amid rising silver imports and broader measures aimed at moderating precious metal imports.
Quick Summary
- India has shifted select silver imports from “Free” to “Restricted” under DGFT policy.
- The amendment was announced through Official Notification No. 17/2026-27 dated May 16, 2026.
- The revised policy applies to silver products under ITC (HS) Codes 71069221 and 71069229.
- Importers will now require authorisation under Policy Condition No. 7 of Chapter 71.
- Export-oriented imports, EOUs, and SEZ units remain exempt under specified conditions.
- The move follows the recent increase in customs duties on gold, silver, and platinum.
- India’s silver imports during FY2025–26 rose sharply to approximately $12.05 billion.
- Silver remains important across jewellery, investment, industrial, electronics, and solar sectors.
India Tightens Silver Import Regulations
India has tightened import regulations for select categories of silver by moving them from the “Free” category to the “Restricted” category under the country’s import policy framework.
DGFT Issues Official Notification
The Directorate General of Foreign Trade (DGFT) announced the amendment through Official Notification No. 17/2026-27 dated May 16, 2026. The notification was issued under Sections 3 and 5 of the Foreign Trade (Development and Regulation) Act, 1992, read with Paragraphs 1.02 and 2.01 of the Foreign Trade Policy (FTP), 2023.
Revised Policy Covers Specific Silver Categories
The revised policy applies to silver products classified under ITC (HS) Codes 71069221 and 71069229 of Chapter 71 under the ITC (HS) 2022 Schedule-I Import Policy.
Import Authorisation Now Mandatory
These categories include certain semi-manufactured silver products and silver bars containing 99.9% or more silver by weight. Earlier, imports of these products were classified as “Free,” allowing imports without prior approval, subject to Reserve Bank of India (RBI) regulations. Under the revised framework, importers will now require authorisation in accordance with Policy Condition No. 7 of Chapter 71 of the ITC (HS) 2022 import policy.
Export-Oriented Imports Remain Exempt
The restriction specifically applies to imports meant for domestic consumption. However, imports intended for export-oriented activities remain exempt from the new restrictions.
EOUs And SEZ Units Continue To Receive Exemption
Silver imported for processing and value-added jewellery exports will continue to remain unrestricted. Similarly, imports by 100% Export-Oriented Units (EOUs) and units operating in Special Economic Zones (SEZs) are exempt, provided the imported goods are not cleared into the Domestic Tariff Area (DTA).
Move Follows Increase In Precious Metal Duties
The latest move comes shortly after the government increased customs duties on gold and silver from 6% to 15%, and on platinum from 6.4% to 15.4%, as part of broader measures aimed at moderating precious metal imports.
India’s Silver Imports Witness Sharp Rise
India remains heavily dependent on imports to meet domestic silver demand. According to trade data, silver imports during FY2025–26 rose sharply to approximately $12.05 billion, compared with around $4.8 billion in the previous financial year. In volume terms, imports increased to nearly 7,334 tonnes.
April 2026 Silver Imports Record Strong Growth
April 2026 silver imports also recorded significant growth, rising approximately 157% year-on-year to about $411 million.
Gold Imports Also Surge During FY2025–26
Gold imports similarly witnessed strong growth during FY2025–26, increasing to nearly $71.98 billion despite lower import volumes, reflecting the sharp rise in global bullion prices during the year.
Industry Watches Impact On Domestic Bullion Market
Industry participants expect the revised import policy to impact the domestic bullion market, particularly in categories covered under the restricted classification. Silver continues to remain an important metal across jewellery manufacturing, investment demand, electronics, solar energy applications, and industrial usage.
Key Global Sources Of India’s Silver Imports
India imports a significant portion of its silver requirements from international markets, with major sourcing destinations including the United Arab Emirates, the United Kingdom, and China.
Download the DGFT Notification No. 17-2026-27
FAQ
What changes has India made to silver import regulations?
India has moved select categories of silver imports from the “Free” category to the “Restricted” category under the DGFT import policy framework.
Which silver products are affected under the revised policy?
The revised policy applies to silver products classified under ITC (HS) Codes 71069221 and 71069229, including certain semi-manufactured silver products and silver bars with 99.9% or more silver purity.
Will importers now require approval for silver imports?
Yes. Importers will now require authorisation under Policy Condition No. 7 of Chapter 71 of the ITC (HS) 2022 import policy for covered categories.
Are export-oriented silver imports exempt from the restriction?
Yes. Imports meant for export-oriented activities, including processing and value-added jewellery exports, remain exempt from the new restrictions.
Are EOUs and SEZ units affected by the revised policy?
No. 100% Export-Oriented Units (EOUs) and Special Economic Zone (SEZ) units remain exempt, provided the imported goods are not cleared into the Domestic Tariff Area (DTA).
Why has the government introduced these restrictions?
The move comes amid a sharp rise in silver imports and follows higher customs duties on precious metals as part of broader efforts to moderate imports.
How much did India’s silver imports increase in FY2025–26?
Silver imports rose to approximately $12.05 billion during FY2025–26, compared with around $4.8 billion in the previous financial year.
Which countries are major suppliers of silver to India?
Major sourcing destinations for India’s silver imports include the United Arab Emirates, the United Kingdom, and China.
Source: SVAR Media Network
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