The Indian government has reclassified 99.9% pure silver bars as a restricted import and raised bullion tariffs to 15% [1, 3].
These measures aim to reduce the national trade deficit and stabilize foreign-exchange reserves by curbing the inflow of gold and silver. The move reflects a tightening grip on the bullion trade to protect the value of the rupee against external pressures [2, 3].
According to an official order issued on Saturday, April 17, 2026, silver bars with a purity of 99.9% [1] now require specific permits for import. Importers must comply with policy condition number seven to obtain the necessary clearance from the Directorate General of Foreign Trade [1].
Alongside the permit requirements, the Ministry of Commerce raised import tariffs on both gold and silver to 15% [3]. This is a significant increase from the previous rate of six% [3]. The government said the tariff hike is intended to regulate the volume of precious metals entering the country, a move that has already led some Indian banks to halt imports due to delays in government clearance [2, 4].
The policy was issued by the Directorate General of Foreign Trade in New Delhi and is effective immediately [2, 4]. By restricting these specific high-purity assets, the government seeks to limit the outflow of capital used to purchase these commodities on the global market [2, 3].
Officials said the combined strategy of permits and higher taxes will provide the state with more oversight of bullion movements. This regulatory shift targets the high-end purity category specifically, while broader tariffs impact the entire gold and silver import sector [1, 3].
“The Indian government has reclassified 99.9% pure silver bars as a restricted import.”
India is prioritizing macroeconomic stability over the free flow of precious metals. By increasing the cost of imports and adding bureaucratic hurdles for high-purity silver, the government is attempting to reduce its current account deficit. This signal suggests that the administration views bullion imports as a primary vulnerability for the rupee's stability and is willing to disrupt bank-led import channels to maintain foreign-exchange reserves.
