Key Points:
- DGFT restricts plain silver jewellery imports from Thailand.
- Imports surged 270% in Apr–Jun 2025.
- Step taken to protect Indian jewellers and jobs.
New Delhi, Sept. 25, 2025–The Directorate General of Foreign Trade (DGFT) has restricted the import of plain silver jewellery unless expressly authorised to curb misuse of India’s Free Trade Agreements (FTAs). The government issued the notification late on Sept. 24, 2025.
“The move, announced through Notification No. 34/2025-26 dated Sept. 24, 2025, aims to curb the misuse of Free Trade Agreements and address large-scale imports of silver in the guise of finished jewellery,” the Ministry of Commerce said in an official statement.
Sharp rise in silver imports
The DGFT cited a steep rise in plain silver jewellery imports during the April–June 2025 quarter as the reason for the restrictions. An analysis by The Hindu of monthly trade data from the Ministry of Commerce and Industry shows India imported $235.1 million worth of silver jewellery in April–June 2025, up from $63.4 million in the same quarter last year, a 270.6% increase.
Most of these imports came from Thailand. India imported $219 million worth of silver jewellery from Thailand in April–June 2025, a 330% increase over $50.9 million in the same period in 2024. The trend continued in July 2025, when total imports rose to $148.5 million from $41.8 million in July 2024, a 255.6% increase. Imports from Thailand alone increased 288.5% to $142.7 million.
“The imports circumventing the provisions of FTA were adversely affecting domestic manufacturers and posing a challenge to employment in the jewellery sector,” the Commerce Ministry said.
New import authorisation rules
Under the new rules, plain silver jewellery can be imported only with a valid authorisation issued by the DGFT. This framework aims to allow genuine trade while preventing unfair practices.
“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 Ministry said.
The move comes amid concerns that the surge in plain silver jewellery imports could undercut domestic producers, particularly small and medium-sized enterprises, and threaten employment in the sector. By requiring import authorisation, authorities aim to ensure that only legitimate trade benefits from FTAs, preventing misuse and preserving local manufacturing.
Background on FTAs and silver trade
India has free trade agreements with several countries, including Thailand, that allow preferential tariffs on certain goods. Traders have increasingly used these agreements to import plain silver under the guise of finished jewellery, avoiding higher duties. This practice has been cited by the DGFT as a reason for the new restrictions.
Silver jewellery is a major component of India’s jewellery sector, which employs millions of workers and contributes significantly to exports. While exports of finished jewellery continue, the surge in imports has raised concerns that domestic firms could lose competitiveness if unchecked.
Industry experts said that requiring authorisation is expected to moderate imports without disrupting genuine trade. Analysts noted that monitoring imports more closely will allow India to protect both manufacturers and workers while still benefiting from international trade agreements.
With these measures, the government seeks to strike a balance between encouraging exports, allowing legitimate imports of plain silver jewellery, and preventing unfair practices that could harm domestic production and employment in the silver jewellery sector.
Visit Business Viewpoint Magazine to read more.
