Under the revised rules, imports of silver bars, unwrought silver and semi-manufactured silver forms, including silver in powder form, will now require mandatory government approval. Certain categories of silver imports have also been made subject to Reserve Bank of India regulations. The changes have been introduced through amendments in the import policy schedule under the ITC (HS) classification.
The move comes amid a broader government effort to tighten oversight of precious metals imports and contain the country’s rising import bill.
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Earlier, the Centre raised import duty on gold and silver to 15 per cent from 6 per cent. Simultaneously, the Directorate General of Foreign Trade (DGFT) tightened norms for duty-free gold imports by gems and jewellery exporters under the Advance Authorisation (AA) scheme.
Under the revised framework, gold imports under AA will be capped at 100 kg per licence, while first-time applicants will face mandatory physical inspection of manufacturing facilities before approvals are granted.
The DGFT has also introduced stricter compliance conditions for repeat applicants. Fresh authorisations will now be issued only after at least 50 per cent of export obligations under previous licences are fulfilled.In addition, exporters importing gold duty-free will have to submit fortnightly reports, certified by chartered accountants, detailing import and export transactions. Regional authorities will also provide monthly consolidated reports to DGFT headquarters for central monitoring.
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The tighter regulations come after India’s gold imports surged more than 24 per cent to a record $71.98 billion in 2025-26, despite lower import volumes. Switzerland remained the largest source of gold imports, followed by the UAE and South Africa.
Industry bodies, including the All India Gems and Jewellery Council, have cautioned that higher duties and tighter restrictions could encourage grey market activity and smuggling.