India restricts import of two types of silver bars with immediate effect

The Indian government has imposed fresh restrictions on silver imports, moving key categories of the precious metal from the ‘free’ to the ‘restricted’ import regime in a significant tightening of India’s bullion trade policy. The decision comes days after the government sharply increased customs duties on precious metals, as part of a broader effort to control imports and reduce pressure on the country’s trade deficit. Under the revised framework notified by the Directorate General of Foreign Trade (DGFT), importers will now require prior government approval to bring several categories of silver bars into India. The rules took immediate effect following the official notification issued on May 16 (Saturday).

Govt tightens import rules for silver

The revised policy covers certain categories of silver bars including those containing 99.9 per cent purity. These categories were earlier placed under the 'free' import regime, which allowed imports subject largely to standard compliance norms. The DGFT said imports under ITC (HS) Codes 71069221 and 71069229 have now been shifted to the 'restricted' category under Chapter 71 of the ITC (HS) 2022 Schedule-I import policy. The notification stated: “The Import Policy of items covered under ITC HS Code 71069221 and 71069229 are revised from ‘Free’ to ‘Restricted’ subject to Policy Condition No. 7.”

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notification issued by the DGFT Photograph: (DGFT)

RBI oversight and approval requirement

Under the new rules, import of certain categories of silver bars will continue to remain subject to Reserve Bank of India regulations, adding another layer of financial oversight for importers. The revised framework affects both investment-grade bullion and silver used as industrial and manufacturing inputs, particularly in sectors such as jewellery, electronics and precision components.

Move follows sharp duty hike on precious metals

The latest restrictions come shortly after the government raised import duties on gold and silver to 15 per cent from 6 per cent, marking one of the sharpest increases in recent years. At the same time, the DGFT tightened norms governing duty-free gold imports under the Advance Authorisation (AA) scheme used by gems and jewellery exporters.