Government’s big decision on silver import, fear of price rise, will silver prices touch the sky?

Silver Price Update: Important news has come for those investing in silver and planning to buy jewellery. The Government of India has made major changes in the import of silver by further tightening the import rules of precious metals, the impact of which may be visible on the market in the coming time.

As per the government decision, import of silver ingots and other semi-finished silver products of 99.9% purity has been included in the restricted category from May 16, 2026. This means that importing these products will no longer be as easy as before. They accounted for a major share in India’s total silver imports last year.

India’s import bill increased rapidly

The main objective of this step is said to be to control the country’s increasing import expenditure and pressure on foreign exchange. India’s import bill has increased rapidly due to global tensions, dollar strength and rupee weakness.

A sharp jump was recorded in silver imports

According to the data, India spent about $ 12 billion on silver imports in the financial year 2025-26, while last year this figure was $ 4.8 billion. A sharp jump in silver imports was also recorded in April 2026, which was 157 percent more than last year.

Import of silver from many countries

India mainly imports silver from the United Arab Emirates, United Kingdom and China. According to experts, now imports can be done only through RBI-affiliated banks, DGFT-approved institutions and designated agencies associated with bullion exchanges.

Limited availability of silver in the market

Market experts believe that this decision may limit the availability of silver in the domestic market, which may lead to an increase in premium and prices. However, it will not have a major impact on the global market.
At present, silver prices in India remain at a high level and so far in May 2026, an increase of about 10% has been recorded.