India tightens silver import rules, mandates prior approval

MUMBAI: India has tightened restrictions on silver imports by adding grain and powder forms to the list of restricted categories and mandating prior valid import authorisation, as the world’s biggest consumer of the metal tries to rein in shipments and ease pressure on the rupee.

Imports of silver in the form of grains, powder, other forms and where content is 99.9% silver are restricted, according to a government order issued on Tuesday, and importers would need to secure a valid import authorization from the Directorate General of Foreign Trade (DGFT).

Last month, India had placed imports of silver bars with 99.9% purity and all other semi-manufactured forms of silver under the restricted category.

It had also raised import tariffs on gold and silver to 15% from 6% as part of efforts to reduce overseas purchases of the metals and ease pressure on foreign exchange reserves caused by higher oil prices.

The South Asian country spent a record $12 billion on silver imports in the financial year ended March 2026, compared with $4.8 billion a year earlier.

In April, India’s silver imports jumped 157% from a year earlier to $411 million, trade ministry data showed.

“The government has made it harder for the bullion industry to bring in silver. Importers now need approval first, and there is no clear idea if they will get it or how long it will take,” said a Mumbai-based bullion dealer with a private bank.

Silver is used in India for jewellery, coins, bars and industrial applications ranging from solar energy to electronics.

Over the past year, demand has been driven more by investment buying than traditional jewellery and silverware consumption, with inflows into silver ETFs climbing to a record high.

India imports silver mainly from the United Arab Emirates, Britain and China.