India Imposes Restriction on Silver Imports (Until 31 March 2026)

Why in Discussion ?

• On 24 September 2025, the Government of India implemented a significant policy change.
• Under this policy, the import of silver and unmounted jewelry was changed from the “free” category to the “restricted” category until 31 March 2026.
• Now, importers must obtain a license from DGFT (Directorate General of Foreign Trade) to import these items.

Affected Products

• Jewelry items
• Parts of precious metals made of silver
• Unmounted and other silver jewelry

Reason for the Step

• Sharp increase in silver imports from Thailand (approximately 40 metric tons)
• 98% of total imports were of Thai origin
• Thailand is not a primary silver-producing country, raising concerns of zero-duty exploitation under the AITIGA agreement
• To close this loophole, India revised its import policy

What is AITIGA ?

• ASEAN-India Trade in Goods Agreement (AITIGA) is a free trade agreement
• Signed in 2009 between India and 10 ASEAN member countries: Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand, and Vietnam
• Provides zero or reduced tariffs on select goods
• Occasionally, duty evasion or misdeclaration can occur under such agreements, which India aims to prevent

Regulatory Impact

• Importers now need a DGFT license
• Helps customs authorities monitor silver imports
• Improves revenue compliance and prevents misuse of free trade provisions

Additional Information

• DGFT: Directorate General of Foreign Trade, under the Ministry of Commerce & Industry
• AITIGA signed: 2009
• Import Categories: Free, Restricted, Prohibited
• ASEAN Member Countries: Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand, Vietnam