India Slaps Emergency Brakes on Silver Imports: DGFT Clearance Now Mandatory

Effective June 2, 2026, the Indian government has moved silver imports from the “Free” to the “Restricted” category, therefore requiring prior permission from the Directorate General of Foreign Trade (DGFT) for all incoming consignments. Almost every tradeable version of the metal—including silver grains, powder, unworked and semi-manufactured shapes, goods with 99.9% or higher silver content by weight, and even silver plated with gold or platinum—falls under the broad rule. Importers can no longer freely import the material; every consignment must have valid DGFT sign-off before it passes Indian customs.

Concurrently, the government has limited lawful admission points to only three authorized channels: RBI-nominated banking institutions, DGFT-approved businesses, and IFSCA-qualified jewelers working via the India International Bullion Exchange (IIBX). All three classes have to trade against clear DGFT clearance, therefore centralizing silver pipeline management inside state-vetted hands. This most recent offensive, which follows the May 2026 prohibition on silver bars and the September 2025 limits on silver jewellery imports, confirms a quickly growing effort to control precious metals inflows.

The policy change is motivated by an alarming increase in India's silver import cost, which in April 2026 shot up 157% year-on-year to $411 million, hence aggravating trade imbalance problems and piling pressure on the rupee amid persistently high world commodity prices. The DGFT licencing criteria follows a sharp tax increase last month that increased silver import tariffs from 6% to 15%, so New Delhi is clearly trying to stop foreign currency from leaving. Though domestic producers and jewellers may soon experience limited supply lines and greater input expenses, authorities hope to reduce speculative demand and protect the nation's external account by layering bureaucratic limitations on top of tariff walls.