Govt tightens silver import norms, makes DGFT authorisation mandatory for high-purity metal

The government on Tuesday tightened import norms for certain categories of silver by mandating a valid import authorisation from the Directorate General of Foreign Trade (DGFT) for shipments brought in through nominated agencies and other permitted channels.

The revised conditions apply to silver powder, silver grains containing 99.9% or more silver by weight, and certain other unwrought silver products, all of which continue to remain under the "restricted" import category.

The Department of Commerce, through a notification issued by the DGFT, amended the import policy conditions for specified silver products covered under Chapter 71 of the ITC (HS) 2022 Schedule-I (Import Policy).

Under the earlier regime, imports of these products were permitted through nominated agencies notified by the Reserve Bank of India in the case of banks, through the DGFT in the case of other agencies, and by qualified jewellers notified by the International Financial Services Centres Authority (IFSCA) for imports via the India International Bullion Exchange (IIBX).

The notification said such imports will now be permitted only against a valid import authorisation issued by the DGFT, irrespective of the channel through which they are imported.

Import of silver (including silver plated with gold or platinum), unwrought or in semi manufactured forms, or in powder form, powder, grains, and containing 99.9% or more by weight of silver, "through nominated agencies notified by the RBI, in the case of banks, by the DGFT, in case of other agencies, any by qualified jewellers as notified by the IFSCA for import through India International Bullion Exchange (IIBX), wherever allowed, shall be permitted only against a valid import authorisation issued by the DGFT," a notification of the directorate said.

The government, however, retained the provision allowing silver dore imports by refineries against a licence with Actual User (AU) condition.

Last month, the government hiked import duty on gold and silver to 15 per cent to curb non-essential imports amid the West Asia crisis, which has put pressure on forex reserves.

Silver imports in April jumped 157 per cent year on year to USD 411 million. It was up about 150 per cent at USD 12 billion in 2025-26.

India mainly imports from the UAE, the UK, and China. The precious metal is used in both jewellery manufacturing and industrial applications.