Government Imposes Import Restrictions on Plain Silver Jewellery till March 2026

New Delhi, September 25, 2025 – The central government has introduced immediate import restrictions on plain silver jewellery and these will be in force until March 31, 2026. The move has been notified by the DGFT (Directorate General of Foreign Trade) is aimed to curb the misuse of FTAs (Free Trade Agreements) and ensure that an overall increase in silver imports disguised as finished jewellery, can be tackled.

Import Policy Shift

The DGFT notification stated that the current status for import policy for plain silver jewellery is now ‘restricted’ unlike the previous ‘free’ status. This implies that any import in this category will need prior government approval or licensing and there will not be any free trade like it was before the notification.

Reason Behind the Move

During the first quarter (April-June) of the financial year, there was a significant increase in the imports of plain silver jewellery under preferential duty exemptions, especially after a sharp rise in silver prices. Compared to the import figures of the previous year, the increase was rather massive. The officials noted that several consignments were flouting the FTA provisions, resulting in unfair competition for domestic producers.

Impact on Domestic Industry

The government suggested that due to unchecked imports, local manufacturers were affected and there was negative impact on employment opportunities in the sector. With the restrictions in place, the domestic players will have a level playing field and the SMEs in the sector could be protected. Further, workers who are directly or indirectly dependent on jewellery manufacturing will be able to safeguard their wages and livelihood.

Outlook

With the restriction in place until March 2026, the government expects domestic silver jewellery manufacturers to benefit from reduced unfair competition, while maintaining tighter control over trade practices under FTAs.

REF: https://content.dgft.gov.in/Website/dgftprod/23199239-9082-4723-b0cd-9300b1d62c04/notfication 34 eng_0001.pdf

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