India’s Silver Import Duty Reduced, Jewelry Import Restrictions Persist Until 2026
India lowered its silver bullion import duty from 15% to 6% and silver jewelry duty from 25% to 20% in 2025, reducing costs for traders and consumers. However, restrictions on plain silver jewelry imports remain until March 2026, requiring licenses to support domestic manufacturers. These changes create short-term price volatility but could stabilize the market and improve financing options long-term.
In 2025, India significantly reduced the customs duty on silver bullion imports from 15% to 6%, making silver cheaper for traders, manufacturers, and consumers. The import duty on silver jewelry and parts was also lowered from 25% to 20%. Despite these reductions, plain silver jewelry and unmounted silver imports remain restricted until March 31, 2026, requiring importers to obtain a government license to curb false declarations and protect local jewelers and jobs. Eligible passengers of Indian origin or valid passport holders returning after at least six months abroad can import up to 10 kg of silver with a 6% duty; non-eligible passengers face a 36% duty. No duty-free silver imports for personal use are allowed, and payments must be made in convertible foreign currency. This policy balance aims to reduce bullion costs while controlling jewelry supply, which may cause temporary price fluctuations. The cheaper bullion benefits lenders and non-banking financial companies accepting silver as collateral, although jewelry-backed loan valuations might experience short-term uncertainty. The Indian silver market trades at a 3–5% premium above global prices due to duties, demand variation, and logistics costs, with Mumbai as the pricing benchmark. Seasonal demand spikes during Diwali and weddings sustain strong silver sales. Once restrictions ease in 2026, imports of designer and lightweight silver jewelry are expected to rise, enhancing market variety and competitiveness.
