India's silver imports saw a drastic 81.6% decline in May, falling to $76 million from $411 million in April. This sharp drop follows the government's imposition of higher import duties (6% to 15%) and mandatory licensing, aimed at curbing record-breaking imports from the previous fiscal year.
India has restricted silver imports, requiring government approval, to prevent traders from exploiting a duty gap created by a recent tax hike on precious metals via the India-UAE free trade agreement.
India has restricted imports of silver bars (99% pure and 'other' types) by moving them to a 'restricted category' requiring a license. This follows a doubling of customs duty to 15% and aims to curb surging shipments amid rising global prices and industrial demand.
India has restricted silver imports, requiring a government license, as part of broader measures to regulate bullion inflows and ease pressure on its external sector. This follows recent caps on gold imports and stricter compliance for the gems and jewellery industry.
India raises import duties on gold and silver to 15% to curb purchases and ease pressure on the rupee, amid rising energy costs and trade deficit
Banks in India have paused gold and silver imports since April 1, awaiting the annual finance ministry notification that exempts nominated banks from integrated goods and services tax (IGST). Over a dozen RBI-authorized banks are waiting for the FY27 notification, which has been delayed without explanation. The delay is causing disruptions in the gold trade, with jewellers reporting export orders being held up. Gold imports surged 24% to $71.98 billion in FY26, though volume dipped 4.7% to 721.03 tonnes.
Indian banks have suspended gold and silver imports since April 1, 2026, waiting for the annual finance ministry notification that exempts nominated banks from integrated goods and services tax (IGST). Over a dozen banks, authorized by RBI and DGFT to import bullion from international banks like JP Morgan Chase, UBS, and Standard Chartered, have halted imports until the FY27 notification is issued. The jewellery trade has warned of serious disruptions, with export orders getting held up. The government may be encouraging reduced gold imports to help the rupee amid current account and balance of payment concerns.
