The Directorate General of Foreign Trade (DGFT) on 24 September 2025 restricted the import of plain silver jewellery unless expressly authorised, after data showed a sharp rise in imports, mainly from Thailand, during the April–June quarter.
The Story
According to a late-evening notification, importers of plain silver jewellery will now need a valid import authorisation issued by the DGFT. Officials said the move is aimed at curbing possible misuse of India’s Free Trade Agreements.
Trade data reviewed by The Hindu revealed that India’s silver jewellery imports rose 270.6% to $235.1 million in April–June 2025 compared with $63.4 million in the same quarter of 2024. Thailand accounted for the bulk of this increase. Imports from Thailand jumped from $50.9 million to $219 million in the same period, a 330% surge.
The Commerce Ministry noted that such a steep and concentrated rise raised concerns over circumvention of tariffs and misuse of trade concessions.
Why It Matters
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Trade safeguards: Unchecked imports risk flooding the domestic market, undermining Indian artisans and manufacturers.
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FTA misuse: Thailand’s sharp increase suggests traders may be using treaty loopholes to bypass tariffs.
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Policy response: Import licensing allows the government to monitor volumes and sources more closely.
Background / Context
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India’s silver trade: While India is among the world’s largest consumers of gold, silver jewellery also forms a significant part of exports and domestic retail demand.
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FTA with Thailand: India and Thailand signed an early harvest agreement in 2004 covering select goods, including jewellery. Industry bodies have often flagged misuse of tariff concessions.
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Past curbs: Similar restrictions have earlier been imposed on gold and studded jewellery imports during periods of abnormal inflows.
Implications
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For importers: Firms will now require DGFT authorisation, adding compliance checks and slowing inflows.
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For domestic industry: The move is expected to provide relief to Indian jewellers facing competition from low-cost imports.
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For trade ties: Could lead to friction with Thailand under the FTA framework, unless balanced with safeguards.
Conclusion
By tightening controls on plain silver jewellery imports, the DGFT aims to protect domestic producers and plug potential misuse of trade agreements. The curbs mark a sharp policy response to the surge in inflows, especially from Thailand, and signal closer monitoring of jewellery trade going forward.
