Overview
- India’s trade regulator DGFT, which issued the order Saturday, moved high‑purity silver bars under HS 71069221 and 71069229 from “Free” to “Restricted,” making licences mandatory with immediate effect.
- Following Wednesday’s sharp duty increase to 15% on gold and silver plus 3% IGST, the government also capped duty‑free gold under the export scheme at 100 kg per licence with tougher inspections for first‑time applicants.
- Imports by 100% Export Oriented Units and Special Economic Zone units remain allowed without licences if the silver is used for exports and does not enter the domestic market.
- The government says the curbs will conserve foreign exchange and close a tariff‑arbitrage route under the India–UAE trade pact, which offers lower duties on silver routed via the UAE.
- Silver import value jumped to about $12 billion in FY2025‑26 with April alone at $411 million, and traders warn licence processing could slow supplies, lift local premiums, and revive grey‑market routes.