India tightens silver and gold import rules

On May 16, 2026, the Indian government implemented a tighter regime for silver imports, moving several categories from a "free" to a "restricted" import policy. The change requires importers of silver bars, unwrought silver, and semi-manufactured silver forms to obtain prior government approval.

Authorities framed the measures as part of broader efforts to manage the country’s trade deficit and control the inflow of precious metals. The policy shift applies with immediate effect and changes the compliance landscape for traders and users of silver in India.

By reclassifying these silver products under a restricted category, policymakers aim to exercise closer oversight of volumes entering the country. Market participants now face an approval-based process rather than automatic access for these categories.

Alongside the tighter import regime, the government raised the import duty on silver to 15%, from a previous rate of 6%. The increase is designed to curb non-essential imports and slow the pace of precious metal inflows that add pressure to the trade balance.

The new import tariff for silver has been set at $2,810 per kilogram. This represents a 7.9% increase from the earlier tariff level of $2,603 per kilogram, effective May 16, 2026. The higher tariff raises the landed cost of silver for domestic buyers.

Officials see these duty and tariff adjustments as part of a strategy to stabilize the rupee and manage foreign exchange reserves amid rising import costs. The combined effect of higher taxes and restricted access is intended to moderate demand for imported silver.

In parallel with the silver measures, the Directorate General of Foreign Trade (DGFT) has tightened compliance requirements for duty-free gold imports. The DGFT introduced a cap limiting duty-free gold to 100 kilograms per license.

The new cap is aimed at improving oversight of gold inflows that enter under concessional schemes. By setting a firm quantitative limit per license, the DGFT seeks to prevent excessive use of duty-free channels for bringing gold into the country.

These gold-related steps complement the silver import restrictions, reflecting a coordinated approach to managing precious metal imports that have implications for the trade deficit and foreign exchange outflows.

The policy package on silver and gold imports is framed as part of India’s broader attempt to manage its trade deficit and preserve currency stability. Precious metals constitute a significant component of the country’s import bill.

By combining import restrictions, higher duties, and tighter quotas, the government aims to slow the growth of non-essential imports while retaining flexibility to approve flows deemed necessary. The measures are also tied to efforts to stabilize the rupee and manage foreign exchange reserves.

The immediate effect is a more regulated environment for silver and gold imports, with higher costs and stricter licensing likely to influence trading patterns, sourcing decisions, and market activity in India’s precious metals sector.