New Delhi: The Indian government has instituted new restrictions on silver imports, reclassifying multiple categories of the metal from a “free” status to a “restricted” policy status, according to an official notification.

Under the amended guidelines, which modify the import policy schedule within the ITC (HS) classification, the procurement of silver bars, semi-manufactured silver shapes, unwrought silver, and silver powder will now necessitate mandatory government authorisation. Furthermore, specific categories of these imports have been placed under the regulatory purview of the Reserve Bank of India.

The policy shift is part of an overarching administrative strategy to enhance oversight of precious metal inflows and manage the nation's escalating import expenditures.

Stricter Gold Import Regulations

Earlier the regulatory overhaul also introduced tighter constraints on gold imports. Under the revised framework, gold imports utilised under Advanced Authorisations (AA) are restricted to a maximum of 100 kilograms per individual license. First-time applicants must undergo a mandatory physical inspection of their production facilities prior to receiving official approval.

The Directorate General of Foreign Trade (DGFT) has also elevated compliance standards for recurring applicants. New import permits will be withheld until an applicant satisfies at least 50 per cent of the export obligations tied to their previous licenses.

Additionally, exporters utilising duty-free gold imports must provide fortnightly transaction ledgers verified by a chartered accountant. To facilitate central oversight, regional bodies are required to submit monthly consolidated reports directly to DGFT headquarters.

Inflow Surges and Market Risks

The heightened scrutiny follows a substantial increase in expenditures, as India’s gold import bill surged over 24 per cent to an unprecedented $71.98 billion during the 2025-26 fiscal year, even though the total volume of imported gold declined. Switzerland retained its position as the primary source of India's gold imports, with the United Arab Emirates and South Africa following as top suppliers.

The new measures have drawn scrutiny from trade organisations. The All India Gems and Jewellery Council and other industry bodies have warned that elevated tariffs and stricter regulatory barriers could inadvertently stimulate smuggling and grey market transactions.

With inputs from ANI