India Expands Precious Metals Crackdown With New Silver Restrictions
India Moves 99.9% Silver Imports to Restricted Category
GFN – NEW DELHI: India tightened restrictions on silver imports this weekend, moving key categories of silver bars and semi-manufactured silver products from the “free” import list to the “restricted” category as New Delhi intensifies efforts to curb bullion inflows and reduce pressure on the country’s external balances.
The move, first reported by Reuters and confirmed through Indian government notifications cited by local media, now requires import permits for 99.9% purity silver bars and several other major silver product categories that previously entered the country with minimal restrictions.
“The government has imposed restrictions on silver imports.”
The silver restrictions follow India’s decision earlier this week to raise gold and silver import duties to 15% from 6%, marking a rapid escalation in the government’s effort to reduce precious metals imports as energy costs and geopolitical pressures strain trade balances. (reuters.com)
According to Reuters, the newly restricted categories represented more than 90% of India’s silver imports during the last fiscal year. India imported roughly $12 billion worth of silver during that period, up from $4.8 billion a year earlier, while April silver imports reportedly surged 157% year-over-year.
Officials are also attempting to prevent traders from exploiting lower-duty pathways through free trade agreements, particularly through the UAE, after the sharp increase in import tariffs earlier this month
India remains heavily dependent on imported silver, sourcing the majority of domestic demand from overseas suppliers including the UAE, Britain, and China. Beyond jewelry and investment demand, silver imports have also risen alongside growth in solar manufacturing and industrial applications.
The latest measures come days after New Delhi imposed additional restrictions on duty-free gold imports for jewelry exporters, including licensing caps, inspection requirements, and expanded reporting rules, as Prime Minister Narendra Modi’s government accelerates efforts to control bullion inflows.