The Indian government has moved to restrict imports of plain silver jewellery, with the measures in effect immediately and set to continue until March 31, 2026. The decision, announced by the Directorate General of Foreign Trade (DGFT) on September 24, comes in response to a sharp rise in imports that were circumventing free trade agreement (FTA) provisions.
Under the new rules, plain silver jewellery will no longer enjoy unrestricted import status. Importers will now require a government licence, effectively bringing the category under the restricted goods list.
Officials explained that the surge in imports during April–June 2025–26 under preferential duty exemptions was creating a challenge for domestic manufacturers. The influx of silver jewellery, often imported in the guise of finished products, was impacting local businesses and employment opportunities in the sector.
“This step aims to create a level-playing field for Indian manufacturers, protect small and medium enterprises, and safeguard jobs across the jewellery industry,” said an official familiar with the policy change.
The government hopes that the curbs will curtail misuse of FTAs and support the domestic silver jewellery market, which has been under pressure from large-scale imports in recent years. Analysts say the move could also encourage greater local production and reduce dependency on imported finished jewellery.
✅ Key Takeaways
- Import Policy: Changed from free to restricted
- Licensing: Government licence now mandatory for imports
- Validity: Effective immediately until March 31, 2026
- Objective: Protect domestic manufacturers, SMEs, and employment in the sector
- Reason: Surge in imports under FTAs adversely affecting local industry
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