Centre Imposes Import Curbs On Silver Jewellery With Cheap Diamonds Until June 30, 2026

The government has introduced temporary restrictions on imports of silver jewellery studded with inexpensive diamonds, effective immediately until June 30, 2026. The Directorate General of Foreign Trade (DGFT) issued the notification on March 16, revising the import policy for the specified category from “free” to “restricted”.

Officials noted that the move is targeted at curbing a surge in silver inflows from ASEAN countries, which had been impacting domestic producers. The action comes against the backdrop of existing measures on precious metal jewellery imports that were implemented earlier to stabilise trade amid global demand weakness.

Updated Restrictions Under The DGFT Notification

The DGFT notification states that the import policy for certain silver jewellery items has been revised from “free” to “restricted” until June 30, 2026. Importers are now required to obtain government authorisation before bringing these goods into the country.

The move is intended to increase scrutiny on low-cost diamond-studded silver jewellery that has seen rising inflows. The restriction is effective immediately and applies specifically to such items, with authorisation mandatory for import clearance.

Link To Broader Policy Measures On Precious Metals

The new curbs follow earlier operational measures announced on November 17, 2025, when the government extended restrictions on imports of gold, silver and platinum jewellery until April 30, 2026. Those measures were introduced due to declining global demand and concerns around rising inbound shipments of precious metal jewellery.

The latest decision aligns with the broader strategy to manage import volumes while supporting domestic jewellery manufacturers. The policy framework remains focused on preventing market distortions and protecting local value‑added sectors.

Trade Data Highlighting Pressure On The Sector

Trade data from the Gem & Jewellery Export Promotion Council showed a sharp contraction in October 2025, with gross exports falling 30.57% year on year to $2.17 billion. Imports also declined by 19.2% to $1.27 billion during the month.

The slowdown was driven by weaker demand across key markets such as the US, Europe and China, along with global economic moderation. Currency fluctuations and elevated gold and diamond prices further added to cost pressures for exporters.

Read More: Silver ETFs See First Net Outflow in Over 2 Years as Prices Surge.

Conclusion

The decision to impose import restrictions on certain silver jewellery categories until June 30, 2026, forms part of the government’s broader effort to manage precious metal inflows and stabilise the domestic jewellery sector. The updated DGFT notification targets rising imports from ASEAN nations, particularly those involving low‑value diamond‑studded silver jewellery.

When viewed alongside earlier trade measures and declining global demand indicators, the move reflects a calibrated approach to maintaining sectoral balance. Importers will now require authorisations to bring in restricted items during the applicable period.

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