India tightens silver import curbs; DGFT approval now mandatory for grains, powder

India has tightened restrictions on silver imports by bringing additional categories, including silver grains and powder, under the restricted list and requiring prior government approval for shipments, according to a government order issued on Tuesday.

Under the revised rules, imports of silver in the form of grains, powder, other forms, and products containing 99.9 per cent silver will require a valid import authorisation from the Directorate General of Foreign Trade (DGFT), Reuters reported.

The move comes weeks after the government placed imports of silver bars with 99.9 per cent purity and other semi-manufactured forms of silver under the restricted category.

The latest measures are aimed at curbing silver imports and reducing pressure on the rupee, as India grapples with a widening import bill driven by elevated commodity prices.

The government had also increased import duties on gold and silver to 15 per cent from 6 per cent last month as part of efforts to reduce overseas purchases of the precious metals and ease pressure on foreign exchange reserves amid higher crude oil prices.

India, the world's largest consumer of silver, imported a record $12 billion worth of the metal in the financial year ended March 2026, sharply higher than $4.8 billion in the previous year.

Imports remained elevated in the new fiscal year as well, with silver purchases rising 157 per cent year-on-year to $411 million in April, according to commerce ministry data.

"The government has made it harder for the bullion industry to bring in silver. Importers now need approval first, and there is no clear idea if they will get it or how long it will take," a Mumbai-based bullion dealer with a private bank said, Reuters quoted.

Silver is used in India for jewellery, coins, bars and a range of industrial applications, including solar energy and electronics.

Demand over the past year has been driven largely by investment buying rather than traditional jewellery and silverware consumption, with inflows into silver exchange-traded funds (ETFs) touching record levels.

India imports silver primarily from the United Arab Emirates, Britain and China. Reuters.

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