India Tightens Silver Import Rules to Curb Rising Shipments

India has further tightened silver import regulations by bringing silver grains, powder, and other forms containing 99.9% purity under the restricted category. Importers must now obtain prior authorization from the Directorate General of Foreign Trade (DGFT) before bringing these products into the country. The move is aimed at controlling rising imports and reducing pressure on the Indian rupee.

The decision follows similar restrictions imposed last month on silver bars and semi-manufactured silver products. The government has also increased import duties on gold and silver to 15% from 6% in an effort to reduce precious metal imports and protect foreign exchange reserves amid elevated global oil prices.

India’s silver imports reached a record $12 billion in the financial year ended March 2026, up sharply from $4.8 billion a year earlier. In April alone, silver imports surged 157% year-on-year to $411 million. Industry participants say the new approval requirement could slow imports, creating uncertainty for bullion traders. Silver demand in India remains strong, driven by investment buying, jewellery, coins, solar energy, and electronics sectors.

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