Govt Imposes Import Restrictions On Silver

New Delhi: The government of India on Saturday imposed new import restrictions on silver with immediate effect. The move seeks to curb overseas purchases of the ‌metal and ease pressure on the country's foreign exchange reserves.

The government's order covers imports of silver, including silver plated with gold or platinum; unwrought silver; semi-manufactured silver and silver in powdered form. Silver importers The Directorate General of Foreign Trade has made it mandatory for silver importers to obtain a government license. 

Notably, the import of silver bars was free earlier, but now they are classified under the “restricted” category. According to the Directorate General of Foreign Trade, those who import silver will need to obtain a government license. 

India is the world's largest consumer of silver. 

Silver is widely used in jewellery, coins, bars and industrial sectors such as solar power and electronics, making the move significant for traders, jewellers and manufacturers.

On May 13, India raised import tariffs on gold and silver to 15% from 6%. 

The latest restrictions come as India is trying to narrow its trade deficit and ease the pressure on the country's foreign exchange reserve, cause by the rising prices of oil. Global fuel prices are jumping due to the ongoing war in the Middle East between US-Israel and Iran, which has disrupted the energy supply chains.