India’s Directorate General of Foreign Trade (DGFT) shifted silver into a restricted trade category. The policy change officially took effect on Saturday, May 16.
Importers now require a government license to bring the precious metal into the country. This move follows a May 13 tariff hike on precious metals.
The government increased import duties from 6% to 15% during that hike. These measures aim to curb overseas purchases to ease pressure on foreign exchange reserves.
Analysts expect the new licensing requirements to tighten the physical silver market.