Import curbs on silver bars: Government changes status from 'free' to 'restricted'

The government has imposed restrictions on silver imports, according to an official order issued on Saturday, as authorities continue efforts to regulate bullion inflows and reduce pressure on the country’s external sector.

In a notification, the Directorate General of Foreign Trade said the import policy for silver, including silver alloys with gold and platinum, has been revised from “free” to “restricted” with immediate effect.



Goods placed under the restricted category will now require a government licence for import.



The latest move comes amid a series of measures announced by the government in recent days to tighten monitoring and control over imports of precious metals.

On Friday, the government capped gold imports under the Advance Authorisation (AA) scheme at 100 kilograms and introduced stricter compliance requirements for importers in the gems and jewellery sector through a Directorate General of Foreign Trade (DGFT) notification.

“Advance Authorisation (AA) for import of gold shall be issued, subject to a maximum permissible quantity limit of 100 kilograms,” the notification said.

The DGFT also tightened norms for first-time applicants.

“In case of application for Advance Authorisation by a first-time applicant, a mandatory physical inspection of the applicant's manufacturing facility shall be undertaken by the concerned regional authority to verify the existence, capacity and operational status of the manufacturing facility,” it said.

The government further linked future gold import approvals to export performance requirements.

“Any subsequent Advance Authorisation for the import of gold, shall be considered for issuance only upon fulfilment of at least 50% of the export obligation prescribed under the preceding Advance Authorisations for gold,” the notification stated.

To strengthen oversight, importers under the Advance Authorisation scheme will now be required to submit fortnightly performance reports certified by an independent chartered accountant detailing import and export activity.

The Centre had also recently raised import duties on gold and silver to 15 per cent from 6 per cent and imposed a 3 per cent Integrated Goods and Services Tax (IGST) on bullion imports.

The measures are aimed at curbing non-essential imports and reducing pressure on foreign exchange reserves at a time when elevated crude oil prices and global geopolitical uncertainties are affecting the external balance.

India's gold imports rose more than 24 per cent to a record $71.98 billion in 2025-26, although shipment volumes declined 4.76 per cent to 721.03 tonnes.

The government had earlier said the tighter framework was intended to ensure better monitoring of imports while maintaining adequate availability for export-oriented sectors such as gems and jewellery.

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