India restricts silver imports to support rupee and cut import bill
India just made it significantly harder to bring silver into the country. A May 16 notification from the Directorate General of Foreign Trade moved most silver imports from “free” to “restricted” status, meaning importers now need a government license to bring bullion across the border. The move came just days after customs duties on precious metals jumped from 6% to 15%, effective May 13. Factor in the Integrated Goods and Services Tax, and the effective tax burden on imported silver now exceeds 18%. For a country that imported roughly $12 billion worth of silver in the fiscal year ending March 2026, thats not a minor tweak. Why India hit the brakes Silver imports surged 150% in value during FY 2025-26, with volumes climbing 42% over the same period. Rising global bullion prices combined with a weakening rupee meant India was spending dramatically more foreign exchange on silver, widening the current account deficit. The restrictions apply broadly, with narrow exemptions carved out only for certain Export Oriented Units and Special Economic Zones. Those exempted entities cannot sell into the domestic market, so jewelers and bullion dealers face the license requirement. Domestic silver prices responded predictably, jumping approximately 7% after the new duties took effect. A familiar playbook,