Business News | India Restricts Silver Bar Imports Amid Rupee Pressure, West Asia Tensions; 99.9% Purity Category Now Needs Permit
Get latest articles and stories on Business at LatestLY. Certain categories of silver imports have also been brought under Reserve Bank of India regulations.
New Delhi [India], May 16 (ANI): The Centre has tightened import rules for certain categories of silver bars by changing their import status from "Free" to "Restricted" with immediate effect, in a move that comes amid rising concerns over India's import bill, pressure on the rupee, and global uncertainty linked to the ongoing West Asia crisis.
The Directorate General of Foreign Trade (DGFT), under the Ministry of Commerce and Industry, issued a notification on Saturday, amending the import policy for specific categories of silver covered under Chapter 71 of the Indian Trade Classification (ITC) Harmonised System (HS) 2022 import policy schedule.
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Under the revised policy, import of silver bars -- containing 99.9 per cent or more silver by weight (ITC HS Code 71069221) and 'Bar---Other' categories (ITC HS Code 71069229) -- which were earlier freely importable subject to RBI regulations, will now be classified as "Restricted".
Certain categories of silver imports have also been brought under Reserve Bank of India regulations.
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Importers will now need to comply with 'Policy Condition No. 7 of Chapter 71 of ITC (HS) 2022, Schedule-I' with immediate effect.
"The import policy of items covered under ITC HS Code 71069221 and 71069229 are revised from 'Free' to 'Restricted' subject to Policy Condition No. 7 of Chapter 71 of ITC (HS) 2022, Schedule-I (Import Policy) with immediate effect," the DGFT notification stated.
The DGFT notification said the revised import policy has been issued under provisions of the Foreign Trade (Development and Regulation) Act, 1992 and the Foreign Trade Policy, 2023.
The move comes at a time when gold and silver prices have remained volatile due to geopolitical tensions in West Asia, which have pushed investors globally towards safe-haven assets such as precious metals and the US dollar.
The rupee has also come under pressure against the US dollar in recent weeks amid higher crude oil prices and global risk aversion linked to the regional conflict.
Prime Minister Narendra Modi had recently urged citizens to reduce dependence on gold purchases and focus more on productive financial investments, while highlighting concerns around large precious metal imports and their impact on the economy.
Analysts say India's large-scale imports of gold and silver increase pressure on the country's trade deficit and foreign exchange outflows, especially during periods of rupee weakness and elevated global commodity prices. (ANI)
(The above story is verified and authored by ANI staff, ANI is South Asia's leading multimedia news agency with over 100 bureaus in India, South Asia and across the globe. ANI brings the latest news on Politics and Current Affairs in India & around the World, Sports, Health, Fitness, Entertainment, & News. The views appearing in the above post do not reflect the opinions of LatestLY)