The Indian government has imposed temporary restrictions on imports of silver jewellery studded with inexpensive diamonds, changing the policy from “free” to “restricted” until June 30, 2026. Issued by the DGFT, the move aims to curb surging inflows—primarily from ASEAN countries—that are hurting domestic producers. This builds on earlier restrictions on gold, silver, and platinum jewellery extended until April 30, 2026, as part of efforts to protect the local jewellery sector amid global demand weakness and declining exports.

With rising gold prices and cultural shifts, India has seen strong demand for silver jewellery across both urban and rural markets. But the country is heavily dependent on imports to meet its silver requirements, as domestic production remains limited. India sources silver primarily from countries such as Mexico, China, Peru and Australia, often in the form of dore or refined bullion. 

Trade data from the GJEPC showed a sharp contraction in October 2025, with gross exports falling 30.57% year on year to $2.17 billion. Imports also declined by 19.2% to $1.27 billion during the month.

The slowdown was driven by weaker demand across key markets such as the US, Europe and China, along with global economic moderation. Currency fluctuations and elevated gold and diamond prices further added to cost pressures for exporters.