India restricts plain silver jewellery imports to protect local manufacturers
As per a notification issued by the Directorate General of Foreign Trade (DGFT) on Wednesday, plain silver jewellery has been been placed in a restricted category, which means that importers will require a valid authorisation from the DGFT to bring in such consignments.
New Delhi: As India enters its peak festival and wedding season, the government has moved to restrict imports of plain silver jewellery to protect domestic manufacturers and safeguard jobs in the sector at a time of high demand.
As per a notification issued by the Directorate General of Foreign Trade (DGFT) on Wednesday, plain silver jewellery has been been placed in a restricted category, which means that importers will require a valid authorisation from the DGFT to bring in such consignments.
The decision comes after the commerce ministry noticed a surge in unstudded silver jewellery imports from some countries, including Thailand, over the past three months (April-June 2025), a senior government official said. The official added that much of the imported jewellery was entering India in the guise of finished products, undercutting domestic prices and threatening employment in the labour-intensive silver jewellery sector.
“The framework seeks to ensure genuine trade continues while preventing unfair practices that harm domestic manufacturers,” another senior official said. “It is particularly timely as we enter the festival and wedding season, when demand for silver ornaments peaks.”
Tenfold surge
Imports of these products from Thailand had surged tenfold, rising from four tonnes to 40 tonnes during the April–June 2025 period. The share of imports from the Southeast Asian country also increased from 78% to 98%, raising suspicions of misuse, the officials added.
India’s jewellery sector, which employs over 4.3 million people, typically sees a surge in production and retail activity during festival and wedding months. The restriction is expected to help domestic manufacturers capitalise on this peak season, prevent price undercutting by imported items, and ensure that local units benefit from the higher seasonal demand.
Officials said that the step would provide a level-playing field for small and medium businesses while safeguarding livelihoods. The notification is expected to have minimal impact on genuine trade, as import authorisations will be granted to compliant businesses.
India primarily imports silver jewellery from China, UAE and Thailand.
Silver prices have surged sharply this year, moving almost in line with gold, which is traditionally seen as the more precious of the two metals. On the Multi Commodity Exchange, silver futures for December delivery traded at around ₹1,34,336 per kilogram on Wednesday, reflecting an increase of about 40% so far in 2025.
In a related development, the government has also amended the export policy for non-basmati rice, making it mandatory for exporters to register their contracts with the Agricultural and Processed Food Products Export Development Authority (APEDA) before shipment, even though exports will continue to remain free.