Government Tightens Silver Import Controls Amid Forex Concerns
The government has imposed import restrictions on silver, changing its status from free to restricted to curb non-essential imports and conserve foreign exchange reserves. The move follows a significant increase in silver imports, fueled by higher prices. The restrictions exempt 100% EOUs and SEZ units, under specific conditions.
The government has tightened control over silver imports by moving the metal from a free to a licensed regime. This change follows a recent hike in import duties on precious metals, aiming to curb non-essential imports and protect dwindling foreign exchange reserves.
The new import curbs require a government license for silver shipments, except for 100% Export Oriented Units (EOUs) and Special Economic Zone (SEZ) units, provided the imported goods are not sold domestically.
The decision comes as silver imports have surged, driven by higher prices, putting additional pressure on India's foreign exchange reserves, which have declined significantly amid global economic tensions.
(With inputs from agencies.)
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