On 24 September 2025, the Indian government announced a major policy shift by restricting silver and unstudded jewellery imports until March 31, 2026. This move comes in response to a significant surge in imports, especially from Thailand, raising concerns about possible duty circumvention under the ASEAN-India Trade in Goods Agreement (AITIGA). The Directorate General of Foreign Trade (DGFT) issued a notification revising the import policy for these items from ‘Free’ to ‘Restricted’, requiring importers to now obtain a government license for bringing in the affected goods.
Key Highlights of the Policy Change
Products Affected,
- Articles of jewellery
- Parts of precious metal of silver
- Unstudded and other silver jewellery
- New Status: From Free to Restricted
- Effective Until: March 31, 2026
Reason for Action
- Surge in silver imports (up to 40 metric tonnes) from Thailand
- 98% of imports were Thailand-origin
- Thailand is not a silver-producing country, suggesting possible misuse of zero-duty privileges under AITIGA
What is AITIGA?
- ASEAN-India Trade in Goods Agreement (AITIGA) is a Free Trade Agreement signed in 2009 between India and ASEAN (10 member countries) including Thailand, Singapore, Vietnam, and others.
- It allows for reduced or zero tariffs on selected goods. However, loopholes in such agreements can sometimes lead to duty evasion through trans-shipment or misdeclaration, which this new policy aims to curb.
Regulatory Implications
- Importers must now apply for licenses from DGFT to bring in the restricted silver products.
- The move allows Indian customs authorities to closely monitor the inflow of silver, improving revenue compliance and discouraging misuse of free trade norms.
Additional Update: Rice Export Policy
- In a separate notification, DGFT also amended the export policy for non-basmati rice.
- Exports are now allowed only after contract registration with the Agricultural and Processed Food Products Export Development Authority (APEDA).
Key Facts
- India’s non-basmati rice exports rose 6.4% YoY, reaching $4.7 billion during April–August FY26.
- The move aims to monitor outbound shipments, avoid domestic price spikes, and ensure food security.
Static Data
- DGFT: Directorate General of Foreign Trade, under the Ministry of Commerce and Industry
- AITIGA Signed: 2009
- ASEAN Members: Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand, Vietnam
- Import Categories: Free, Restricted, Prohibited
- APEDA: Nodal agency under Ministry of Commerce, oversees agri-export promotion