The order also covers imports routed through RBI-nominated agencies, DGFT-approved entities, and qualified jewellers operating via the India International Bullion Exchange.
The latest tightening expands earlier restrictions, after the government last month already placed silver bars with 99.9% purity and other semi-manufactured forms under the restricted category. Together, the measures signal a broader effort to regulate inflows more tightly at a time of elevated demand.
The policy push comes alongside higher import tariffs, with duties on gold and silver raised to 15% from 6% last month, as authorities moved to discourage non-essential imports and contain pressure on foreign exchange reserves amid higher global oil prices and external volatility.India, the world’s largest consumer of silver, spent a record $12 billion on imports in FY26 ended March 2026, sharply higher than $4.8 billion a year earlier. In April alone, imports surged 157% year-on-year to $411 million, according to trade ministry data.
“The government has made it harder for the bullion industry to bring in silver. Importers now need approval first, and there is no clear idea if they will get it or how long it will take,” a Mumbai-based bullion dealer was quoted as saying in Reuters report, adding that the uncertainty could impact procurement planning.
Silver demand in India spans jewellery, coins and bars, as well as industrial uses including solar energy and electronics. Over the past year, investment demand has also gained prominence, with inflows into silver exchange-traded funds (ETFs) rising to record levels.
India continues to source most of its silver imports from the United Arab Emirates, the United Kingdom and China, with the latest measures expected to make trade flows more compliance-driven and potentially slower in the near term.
–With agencies inputs
