Why Has the Indian Government Restricted Silver Jewellery Imports?

The Directorate General of Foreign Trade (DGFT) recently announced that plain silver jewellery will now require special authorisation for import. This decision comes after a sharp rise in imports of unstudded silver jewellery, especially from countries like Thailand, during the April–June 2025 period.

Officials noted that much of this jewellery entered India as finished products, undercutting domestic prices and threatening employment in the labour-intensive silver jewellery sector.

Protecting Domestic Manufacturers

India’s silver jewellery industry employs over 4.3 million people and sees peak demand during the festival and wedding season. By restricting imports, the government aims to:

• Ensure domestic manufacturers benefit from seasonal demand.
• Prevent price undercutting by imported silver jewellery.
• Allow genuine trade to continue while curbing unfair practices.

Surge from Thailand

Imports of silver jewellery from Thailand increased tenfold, rising from 4 tonnes to 40 tonnes between April and June 2025. Thailand’s share of India’s silver imports jumped from 78% to 98%, raising concerns about misuse and unfair competition.

Rising Silver Prices

Silver prices have surged sharply in 2025, moving nearly in line with gold. On the Multi Commodity Exchange, silver futures for December delivery traded at ₹1,34,336 per kilogram, reflecting an increase of about 40% this year, emphasising the importance of protecting domestic production.

Read More: Gold and Silver Outperform Equities Ahead of Diwali 2025: Check Festive Season Trends Over Last 8 Years.

Conclusion

The DGFT’s restriction on plain silver jewellery imports is a strategic measure to support local manufacturers, protect employment, and ensure fair pricing during high-demand periods. While imports will continue under authorised channels, the move is expected to strengthen India’s domestic silver jewellery market.

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