The Indian government has imposed import restrictions on plain silver jewellery, tightening controls until March 31, 2026, in a bid to protect domestic manufacturers and curb misuse of trade benefits.
The Directorate General of Foreign Trade (DGFT) issued a notification revising the import policy from “free” to “restricted” with immediate effect. Under the new rules, importers will now be required to obtain a government licence before bringing plain silver jewellery into the country.
Officials said the move was prompted by a sharp rise in imports during April–June 2025-26 compared to the same period in 2024-25. Many of these consignments reportedly entered under preferential duty exemptions, exploiting free trade agreements (FTAs) by being classified as finished jewellery rather than raw or semi-finished products.
“The influx of such imports was undermining the competitiveness of local manufacturers and endangering employment in the jewellery sector, particularly among small and medium-sized enterprises,” an official explained.
The government’s decision is aimed at ensuring fair competition for Indian jewellers while also preventing job losses in an industry that supports millions of livelihoods. Policymakers believe that by closing these loopholes, domestic production capacity and sectoral employment will be reinforced.
Industry experts note that the measure aligns with broader efforts to shield Indian industries from aggressive import patterns witnessed in recent quarters. By restricting duty-free inflows of plain silver items, the government hopes to strengthen the sector’s resilience against unfair trade practices and provide stability to local jewellery makers.
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