Govt restricts plain silver jewellery imports till March 2026, here's why

Indian authorities have imposed import restrictions on plain silver jewellery until the end of March 2026, prompted by a significant rise in imports under preferential duty exemptions from April-June 2024-25 to April-June 2025-26. The Directorate General of Foreign Trade (DGFT) issued a notification stating: "Import policy has been amended from free to restricted with immediate effect till March 31, 2026," requiring that all such imports now obtain a government licence. The change is in response to increased imports that allegedly bypassed free trade agreement (FTA) provisions by being classified as finished jewellery.

Officials highlighted that "The imports circumventing the provisions of FTA were adversely affecting domestic manufacturers and posing a challenge to employment in the jewellery sector," an official said. Concerns have intensified as these practices have threatened the competitiveness of local jewellery makers, especially small and medium-sized enterprises, and contributed to potential job losses.

The restrictions are intended to address these concerns while also preventing the continued misuse of FTAs for duty-free imports of plain silver items.

The government believes that the decision will provide a level-playing field to India's jewellery manufacturers, safeguard the interests of small and medium businesses, and secure livelihood opportunities for workers in the sector, the official said.

This policy shift places India in line with broader sectoral efforts to protect domestic industries against aggressive import patterns seen in recent quarters. The move comes as domestic jewellers face mounting competition from imported products taking advantage of trade loopholes, and seeks to strengthen the sector's employment base and production capacity.