The government on Saturday tightened its grip on silver imports, imposing fresh restrictions that will require traders to obtain a government licence to bring the precious metal into the country.
The significant policy shift comes just days after it sharply raised customs duties on precious metals.
The Directorate General of Foreign Trade (DGFT) issued a notification changing the import policy for specified silver bars from 'free' to 'restricted' with immediate effect.
The move covers silver bars containing 99.9% or more silver by weight, along with other specified silver bar categories, including silver plated with gold and platinum. Earlier, imports were freely allowed subject to Reserve Bank of India regulations.
Under the new framework, goods under the restricted category require a government licence for imports — a procedural hurdle that effectively gives authorities control over the volume and pace of silver entering the country.
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The timing is significant. Just days earlier, on May 13, the government had hiked import duty on precious metals from 6% to 15% — a steep nine percentage point jump that sent an immediate signal of intent to the market.
Saturday's import restriction doubles down on that move, suggesting a coordinated policy effort to clamp down on silver inflows rather than merely make them costlier.
The dual policy action — higher duties followed by outright import curbs — is likely to tighten domestic supply, potentially pushing silver prices higher in the short term.
Jewellers, industrial buyers and bullion traders are expected to feel the pinch most immediately.
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