DGFT moves silver imports to 'restricted' list, licences mandatory after 15% duty hike

Notification 17/2026-27 closes UAE FTA arbitrage window where 7% concessional rate undercut India's 15% duty plus 3% IGST. Silver imports hit $12B in FY26, up 150%. Export units exempt; Tanishq, Titan, Kalyan face tighter sourcing compliance for silver jewellery lines.

— Source publishedSun, 17 May, 2026, 10:27 IST·First seen Sun, 17 May, 2026, 10:43 IST·Source Times of India · Business

What happened

India shifted silver imports from 'free' to 'restricted' via DGFT Notification 17/2026-27, requiring licences after a duty hike to 15% created arbitrage risk

Key facts

  • 15% duty
  • 3% IGST
  • 7% UAE concessional
  • $12 billion silver imports FY26
  • 150% jump
  • $71.98 billion gold imports

Why this matters

Vertically integrated domestic silver refiners and export-oriented units retaining duty exemptions become more strategically valuable acquisition or partnership targets in this restricted-licence regime.