Editor’s Note
This article discusses the government’s recent restriction on silver imports, specifically targeting non-fancy jewelry, until March 2026. The measure is a response to a surge in imports and record-high prices.
Amid record-breaking increases in silver prices over the past few days, the government has taken a major step regarding its imports. The government has banned silver imports for the next few months due to a massive surge in imports from ASEAN countries, particularly Thailand. This ban applies to non-fancy jewelry. That is, jewelry that does not contain any shiny stones, pearls, or gems such as diamonds, emeralds, etc. These are simple design jewelry, used for daily wear.
Yesterday, on 24 September, the Directorate General of Foreign Trade issued a notification stating that the import policy has been changed from ‘Free’ to ‘Banned’ with immediate effect until 31 March 2026. The objective behind this government move is to prevent misuse of the Free Trade Agreement (FTA) and to curb large-scale imports of silver under the guise of finished jewelry.
According to the government notification, it is mandatory to obtain a license from the government for goods falling under the banned category. The restrictions have been imposed in view of the sharp increase in imports of plain silver jewelry under preferential duty concessions during April-June 2024-25 to April-June 2025-26.
An official told news agency PTI that the misuse of FTA rules for imports was having a negative impact on domestic manufacturers. Additionally, it was creating challenges for employment in the jewelry sector. He further stated that this government decision will provide equal opportunities to jewelry manufacturers. The interests of small and mid-level traders will be protected. At the same time, livelihood opportunities for workers employed in this sector will be secured.