The Government of India has amended the import policy for specific categories of silver jewellery, moving them from the ‘Free’ category to the ‘Restricted’ category with immediate effect.
The decision, announced by the Directorate General of Foreign Trade (DGFT) under the Ministry of Commerce & Industry, applies to silver jewellery studded with diamonds or other precious and semi-precious stones. This regulatory change is scheduled to remain in force until 30 June 2026.
Reclassification of Studded Silver Jewellery Imports
According to Notification No. 63/2025-26 issued on 16 March 2026 [cite: 4], the amendment specifically targets two items under Chapter 71 of the Indian Trade Classification (Harmonised System).
The first category is ITC(HS) code 71131144, which covers silver jewellery studded with diamonds. The second category is ITC(HS) code 71131145, which involves silver jewellery studded with other precious and semi-precious stones. Both items were previously allowed for import without a specific licence under the ‘Free’ policy. Under the revised ‘Restricted’ status, importers must now obtain a valid restricted import authorisation from the DGFT before shipments can be cleared through Indian customs.
Legislative Framework and Immediate Implementation
The amendment was exercised under the powers conferred by Section 3 and Section 5 of the Foreign Trade (Development & Regulation) Act, 1992. It also aligns with paragraphs 1.02 and 2.01 of the Foreign Trade Policy 2023.
The notification was signed by Lav Agarwal, the Director General of Foreign Trade and Ex-officio Additional Secretary to the Government of India. The directive clarifies that the policy shift is effective immediately, impacting all upcoming consignments that do not meet the criteria for grandfathering under existing contractual obligations as per standard DGFT procedures.
Historical Context and Industry Impact
The restriction of silver jewellery imports follows a broader trend of regulatory interventions by the Indian government to manage the trade deficit and support domestic manufacturing. India is one of the world’s largest consumers of silver, and the jewellery sector contributes significantly to the national economy.
In previous years, as noted by The Economic Times, the government has implemented similar curbs on gold and silver articles to prevent duty evasion and check surges in non-essential imports from trading partners. For instance, in 2023, the DGFT restricted certain gold jewellery imports to ensure that the Comprehensive Economic Partnership Agreement (CEPA) with the UAE was not being misused for arbitrage.
For Indian jewellery retailers and wholesalers, this restriction means that sourcing studded silver jewellery from international markets will become more complex. The move is expected to encourage the domestic production of studded silver items, which has seen increased demand as a more affordable alternative to gold jewellery.
Industry analysts suggest that these measures are often temporary tools used to stabilise the market during periods of high import volatility. The current restriction is explicitly time-bound, terminating mid-way through 2026 unless further extended by a subsequent notification.
