Government Enforces Stricter Silver Import Regulations Amidst Rising Demand

The Centre has intensified its measures on the import of silver, implementing stricter regulations as the country's silver acquisition reaches unprecedented levels.  

This new directive seeks to control the inflow of silver into the Indian market and reduce pressure on the national currency. 

New Restrictions on Silver Imports 

The government has expanded the restricted category for silver imports, requiring prior authorisation for additional forms such as grains and powder with 99.9% purity.  

As per the directive released on June 2, 2026, importers must obtain a valid authorisation from the Directorate General of Foreign Trade (DGFT) to bring these specific silver forms into the country. 

This regulatory expansion follows a similar move from the previous month when 99.9% purity silver bars and various semi-manufactured silver forms were also placed under restricted import conditions. 

Impact on Silver Import Figures 

In the fiscal year ending March 2026, India spent a remarkable $12 billion on silver imports, significantly up from $4.8 billion the previous year.  

According to trade ministry data, silver imports in April rose by 157% year-on-year, reaching $411 million. 

Efforts to Stabilise Foreign Exchange Reserves 

The government's strategy forms part of its broader effort to balance foreign exchange reserves, influenced by rising international oil prices.  

Last month saw an increase in import duties on gold and silver, to 15% from 6%, as another step towards this goal. 

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Industry Reactions to New Regulations 

Industry players reflected concerns about the potential uncertainties these new rules might introduce for silver importers.  

Silver's versatile use across jewellery, coins, bars, and industrial applications like solar panels and electronics highlights its significant role in the market. 

The demand for silver has also been bolstered by a growing interest from investors, with silver exchange-traded funds (ETFs) witnessing substantial inflows in the past year. 

Conclusion 

The new import restrictions underscore the government's intention to manage the surging demand for silver while ensuring the stability of foreign exchange reserves. Despite the changes imposed, the consistent demand from industries and investors continues to indicate the crucial role silver plays in the national economy. 

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