Govt imposes restrictions on silver imports:Import license to be required for bringing it from abroad; import duty increased 3 days ago

The central government on Saturday imposed new restrictions on silver imports. According to the official notification, importing several categories of silver will now require government approval. These include 99.9% pure silver bars, unwrought (raw) silver, silver powder, and silver coated with gold or platinum. Earlier, these items could be imported freely, but now they have been placed under the “restricted” category. The government says the step has been taken to reduce non-essential imports and control foreign exchange outflow. Earlier, on 13 May, the government had also increased import duty on gold and silver from 6% to 15%. Let’s understand the impact in simple QA form Q1: What new order has the government issued on silver imports? Answer: Through a new notification, the government has tightened import rules for several categories of silver. Earlier, silver imports were in the “free” category, but now they have been shifted to the “restricted” category. Q2: Which silver products are covered under this restriction? Answer: Silver bars, unwrought (raw) silver, silver powder, and semi-manufactured silver products can no longer be directly imported into India without approval. Q3: What is the new process to import silver? Answer: Companies will now need a government licence to import silver. Without it, customs clearance will not be allowed. Some categories may also come under the Reserve Bank of India (RBI) monitoring framework. Q4: Why has this restriction been imposed suddenly? Answer: The main aim is to control the rising import of precious metals. Increasing imports are raising the import bill and widening the trade deficit. The government also wants to manage foreign exchange outflow and support the rupee. Q5: What changes have been made in the Advance Authorisation scheme for exporters? Answer: The Directorate General of Foreign Trade (DGFT) has tightened rules for duty-free gold imports under this scheme. Exporters can now import a maximum of 100 kg of gold per licence. Q6: What rules apply to first-time applicants for duty-free gold? Answer: First-time applicants must undergo physical verification of their manufacturing facilities before approval. Only after official inspection will a licence be issued. Q7: What about repeat applicants? Answer: Repeat authorisations will only be issued if the company has completed at least 50% of its export obligations under the previous licence. Q8: How will duty-free gold import companies be monitored? Answer: Companies must submit transaction reports every 15 days, certified by a Chartered Accountant. Regional officers will compile monthly reports for DGFT headquarters. Q9: What is India’s current gold import level? Answer: In 2025–26, India’s gold imports rose by over 24% to a record $71.98 billion. Import volume slightly fell, but the total bill increased due to higher global prices. India imports most gold from Switzerland, followed by the UAE and South Africa. Q10: What is the jewellery industry’s reaction? Answer: Industry bodies like the All India Gems and Jewellery Council have expressed concern. They warn that higher import duties and restrictions may increase the grey market and smuggling, affecting legitimate businesses. Gold and silver prices rise sharply this year Gold and silver prices have fluctuated significantly this year. In 2026 so far, gold has become costlier by ₹25,015 per 10 grams, while silver has risen by ₹38,080 per kg. On 31 December 2025, gold was priced at ₹1.33 lakh per 10g, which has now reached ₹1.58 lakh. Silver was priced at ₹2.30 lakh per kg, which has now risen to ₹2.69 lakh per kg. On 29 January, gold hit an all-time high of ₹1.76 lakh and silver reached ₹3.86 lakh per kg. PM’s appeal to avoid buying gold for a year The Prime Minister said: “There was a time when people would donate gold during crises in the national interest. Today, donation is not needed, but in the interest of the country we should decide that for one year, during family events, we will not buy gold jewellery. We must save foreign exchange and accept this challenge of patriotism.” Why this was said: The Prime Minister made this appeal to help conserve India’s foreign exchange reserves. India imports around 99% of its gold requirements. In 2025–26, the gold import bill was about ₹6.4 lakh crore. Gold accounts for nearly 9% of India’s total import spending, making it the second-largest imported item.