The government has implemented stricter restrictions on silver imports following recent changes in import duties on precious metals. As announced on Saturday, the policy shift comes as part of broader measures to manage the inflow of valuable commodities. The Directorate General of Foreign Trade has made it mandatory for silver importers to obtain a government license for all silver imports, including those plated with gold and platinum. Previously classified as free for import, these goods now fall under a restricted category against 'free' earlier, requiring a licence for all imports.
Silver imports have experienced a remarkable surge in recent months as prices have shot up in the global market, both as an investment instrument and its multiple uses in the industrial sector. As reported by The Economic Times, silver imports shot up two-and-a-half times to $12.1 billion, while the volume jumped 42% to 7,335 tonnes during the last financial year. The trend continued in April with the latest commerce department data showing that the value of imports soared 2.6 times to $411 million.
The latest restrictions follow the government's decision to significantly hike customs duties on precious metals from 6% to 15% on May 13. This substantial increase in import duties has prompted the government to implement additional measures to manage the inflow of valuable commodities. The move is expected to curb easy entry of silver into the market, aligning with the administration's intent to reduce deficit and regulate foreign exchange outflows. The comprehensive approach includes both duty increases and import licensing requirements to ensure better control over precious metal imports.
