Govt restricts silver imports, makes licence mandatory for key categories

Silver import rules tightened to curb non-essential imports; primary keyword “silver imports” used here

New Delhi, late morning — The central government on Saturday tightened rules around silver imports, moving key categories from a freely importable list to the “restricted” category and making an import licence mandatory, according to an official notification seen by this newspaper.

What changed
The notification says 99.9% pure silver bars, unwrought (raw) silver, silver powder and silver coated with gold or platinum will now require prior government approval for import. Customs will not clear consignments in these categories without the requisite licence, officials said.

Why the step was taken
Officials described the move as aimed at reducing non-essential imports and checking the outflow of foreign exchange. “Rising imports of precious metals have been widening the trade deficit and putting pressure on the rupee,” a government source familiar with the matter said on condition of anonymity. The change follows an earlier increase in import duty: on May 13 the government raised import duty on gold and silver from 6% to 15%.

Timing and context
The DGFT notification comes amid a sharp year‑to‑date rise in bullion prices and record gold imports in 2025–26. India’s gold import bill climbed over 24% to about $72 billion last fiscal year, putting added focus on curbing precious‑metal imports. Silver prices have also jumped — from roughly ₹2.30 lakh per kg on 31 December 2025 to about ₹2.69 lakh per kg this month, industry data show.

Trade and routing concerns
Think tanks and officials cited concerns that low‑duty silver could be routed through third countries, notably the UAE, under trade pacts such as the India‑UAE CEPA. “There was a risk of a surge in cheap silver imports routed via Dubai to exploit preferential tariffs,” said Ajay Srivastava, founder of the Global Trade Research Institute (GTRI). The restricted status is intended to plug such channels, the government said.

Rules for importers
Under the new process importers must obtain a licence from the commerce ministry or designated authority before consignments are cleared by customs. Some categories may also be placed under Reserve Bank of India monitoring, which would add compliance for banks and traders dealing in overseas payments for bullion.

Changes to Advance Authorisation
Separately, DGFT has tightened the Advance Authorisation scheme that allows duty‑free imports for exporters. Exporters will be allowed to import a maximum of 100 kg of gold per licence, and first‑time applicants must undergo physical verification of their manufacturing units before licences are issued. Repeat authorisations will be contingent on meeting at least 50% of past export obligations, the notification said. Firms must now file transaction reports every 15 days, certified by a chartered accountant, with regional DGFT officers compiling monthly reports for headquarters.

Industry reaction
Jewellery and manufacturing bodies expressed concern about the suddenness of the move. The All India Gems and Jewellery Council warned higher duties and licensing could push trade into the grey market and spur smuggling, hurting legitimate businesses and small jewellers. “Sudden restrictions create near‑term disruption for manufacturers that rely on imported raw silver,” said an industry executive requesting anonymity.

Ground reality and public impact
On the ground in Delhi and Mumbai, dealers reported an uptick in enquiries about import licences and compliance timelines. Small and medium jewellers — many of whom operate on thin margins — said they would face working capital stress if supplies tighten. Consumers are already seeing higher retail prices after bullion runs earlier this year.

What’s next
Officials said implementation details, including licence application procedures and timelines, will be clarified in follow‑up orders. Traders and industry associations expect further consultations with the commerce ministry and customs in the coming days. Markets will be watching how the new rules affect domestic liquidity of silver and the wider jewellery supply chain.

Focus on enforcement and monitoring is likely to increase, officials added, as New Delhi balances trade deficit concerns with the needs of industry.

Gold and silver rates slide after PM Modi’s appeal to halt purchases for a year

Following Prime Minister Narendra Modi's surprise call to citizens to refrain from purchasing gold jewellery for the next twelve months to safeguard foreign exchange, bullion markets witnessed a notable correction on Monday.

In a direct response to policy signals and a push for economic fiscal prudence, gold and silver prices saw a downward trend in domestic markets today. The India Bullion and Jewellers Association (IBJA) reported that the price for 10 grams of 24-carat gold fell by ₹801, settling at ₹1,50,277.

The ripple effect was also felt in the white metal category, with silver prices retreating by ₹300 to close at ₹2,55,300 per kilogram. Market analysts suggest the dip is a primary reaction to the Prime Minister’s recent statement, which aimed at reducing India’s heavy reliance on bullion imports.

PM’s appeal to save foreign exchange

The shift in market sentiment follows Prime Minister Narendra Modi’s address on Sunday, where he urged Indian households to pause gold purchases for a year, regardless of domestic occasions or festivals. The rationale provided was centered on the preservation of foreign exchange reserves.

India remains one of the world's largest importers of gold, transactions for which are settled in US dollars. "Every gram of gold we buy from abroad impacts our trade balance. By pausing for a year, we can significantly strengthen our domestic economy," sources familiar with the government’s thinking noted.

GTRI backs government stance

The Global Trade Research Initiative (GTRI) has come out in strong support of the Prime Minister’s appeal. Ajay Srivastava, founder of GTRI, highlighted that India’s gold bar imports have surged aggressively, jumping from $36.5 billion in 2022 to a staggering $58.9 billion in 2025.

According to GTRI, this ballooning import bill is putting undue pressure on India's trade balance. The think tank noted that the move is necessary to prevent further depletion of forex reserves at a time when global currency markets remain volatile.

Regional price variations across India

Despite the national dip, retail prices continued to show variation across major urban centers due to local taxes and making charges. In the national capital, Delhi, 24-carat gold was quoted at ₹1,52,280 per 10 grams. Mumbai and Kolkata saw slightly lower rates at ₹1,52,123.

Chennai remains the most expensive market among the metros, with prices hovering around ₹1,53,820. Meanwhile, cities like Bhopal, Ahmedabad, and Patna saw prices stabilize near the ₹1,52,180 mark.

Impact on the jewellery trade

The appeal has sent shockwaves through the jewellery manufacturing sector, which was gearing up for the upcoming wedding season. While institutional investors are weighing the long-term impact, retail buyers in local markets like Chandni Chowk in Delhi and Zaveri Bazaar in Mumbai reported a "wait-and-watch" approach.

"The footfall has slowed down since this morning," said a local jeweller in Lucknow. "While gold is a traditional hedge, the Prime Minister's direct appeal carries significant weight with the middle-class buyer."

Expert advice for retail buyers

Industry experts are advising those who still need to make essential purchases to remain vigilant. The IBJA has reiterated the importance of buying only BIS-hallmarked gold to ensure purity. Consumers are encouraged to look for the alphanumeric HUID (Hallmark Unique Identification) code.

For silver buyers, experts suggest simple ground-level tests—such as the magnet or ice test—to verify authenticity, especially as prices remain at historic highs despite the day's minor correction.

Future outlook for bullion

Whether this price drop is a short-term reaction or the beginning of a cooling period remains to be seen. If the public heeds the Prime Minister's call, the reduction in physical demand could lead to a further softening of rates over the next quarter. However, global factors, including US Fed policies and geopolitical tensions, will continue to play a role in determining the final trajectory of gold in India.

‘Compromised PM no longer capable’: Rahul says ‘don’t buy gold’ advice is proof of Modi govt’s failure

 Congress leader Rahul Gandhi launched a sharp counterattack on Monday against Prime Minister Narendra Modi’s recent “seven appeals” to the public, arguing that asking citizens to cut back on gold, travel, and cooking oil was not sound advice but an admission of the government’s own economic mismanagement.

In a post on X, Gandhi said the Prime Minister appeared “compromised” and no longer capable of running the country.

“Yesterday, Modi ji asked the public to make sacrifices—don’t buy gold, don’t travel abroad, use less petrol, reduce consumption of fertilisers and cooking oil, take the metro, work from home. These are not suggestions. These are failures,” Gandhi wrote.

He added that after 12 years in power, the government had reached a point where the Prime Minister had to tell people what to buy, what not to buy, where to go, and where not to go.

PM’s Secunderabad pitch

The exchange began on Sunday. Speaking at a rally in Secunderabad, PM Modi had stressed the need to reduce dependence on imports to save foreign exchange. He listed seven specific asks: reduce petrol and diesel use, promote work-from-home models, cut down on edible oil consumption, halve chemical fertiliser use, postpone non-essential foreign travel, and avoid buying or donating gold for one year.

Officials said the appeals were prompted by rising global prices due to conflicts in West Asia. India, which does not have large domestic oil reserves, remains vulnerable.

Opposition piles on

But opposition parties quickly rejected the narrative. Congress general secretary Jairam Ramesh claimed the economic situation was far more serious than official figures suggested. Samajwadi Party chief Akhilesh Yadav said the BJP had failed on both the economy and foreign policy.

“As soon as elections ended, the government suddenly remembered a ‘crisis’. In reality, there is only one crisis for the country, and its name is BJP,” Yadav said.

Trinamool Congress MP Saket Gokhale questioned why ordinary citizens were being asked to make sacrifices while ministers continued using Air Force aircraft and large convoys. He also asked why the announcements came only after several state elections had concluded.

The numbers behind the appeal

Government data and industry reports show why foreign exchange outflows have become a concern.

Annual gold expenditure has crossed ₹6 lakh crore, up from ₹4.89 lakh crore in 2024–25. The World Gold Council noted that in the first quarter of 2026, investment demand for gold in India surpassed jewellery demand for the first time.

Indians spent ₹3.65 lakh crore on foreign travel in 2025–26, a sharp rise from ₹2.72 lakh crore in 2023–24.

Fertiliser imports touched ₹1.50 lakh crore this year, a 76 per cent jump. A significant portion comes from Qatar, making supplies vulnerable to regional instability. Prices have remained elevated as a result.

Crude oil, however, remains the biggest drain. India imports nearly 70 per cent of its requirements. While the oil import bill declined to ₹10.35 lakh crore in 2025–26 from ₹11.66 lakh crore the previous year, crude prices have surged nearly 50 per cent in the past two months. Sources familiar with the matter said the bill could climb to ₹17 lakh crore if the conflict widens.

What happens now

For now, the political battle lines are clear. The government argues it is preparing the public for hard choices in the national interest. The opposition sees an administration struggling to shield the economy from global shocks.

Rahul Gandhi ended his post with a pointed remark: “A compromised PM cannot fix this. A failed govt cannot ask for more sacrifices.” The Prime Minister’s Office has not issued a direct response.