India has placed silver bars and other forms of refined silver under a restricted import category, tightening access to one of the country’s key industrial and investment metals, according to a government order.

The decision covers silver bars of 99.9% purity along with semi-manufactured silver under key tariff codes, including HS 71069221 and 71069229. The move shifts these imports from a free-entry system to a permission-based regime, meaning importers will now require government approval before bringing shipments into the country.

The restriction comes shortly after India increased import duties on precious metals, including silver, as part of broader efforts to manage foreign exchange pressures and reduce reliance on overseas purchases. India remains heavily dependent on imports for silver, which accounts for more than 80% of domestic consumption.

The change is expected to reduce import volumes and tighten physical supply in the local market. Industry participants anticipate that this could increase domestic premiums over global silver prices, particularly if industrial demand remains strong in sectors such as solar energy, electronics, and investment products.

India imported a record level of silver in the 2025/26 financial year, driven largely by investment demand through bars, coins, and exchange-traded funds. With imports now restricted, traders expect tighter availability and potential volatility in local pricing as the market adjusts to the new regulatory framework.

Officials and bullion market participants say the policy may also differentiate between industrial use and investment demand, with approvals potentially prioritised for manufacturing needs.