A Indian government notification issued on Saturday showed that New Delhi has imposed immediate restrictions on imports of certain silver products, shifting them from the "free" to the "restricted" category.
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The move comes as part of the government's efforts to curb imports of precious metals to ease pressure on the country's foreign exchange reserves, which has been exacerbated by soaring oil prices.
The notification specified that the restriction applies to imports of certain high-purity silver bullion and specific other grades.
On Tuesday, India raised the import duty on gold and silver from 6% to 15%. This move could dampen demand in the world's second-largest consumer of precious metals, but it aims to narrow the country's trade deficit and support the rupee.
India, the world's largest consumer of silver, utilizes the metal in jewelry, coins, bullion, and sectors ranging from solar energy to electronics.
Over the past year, demand has been driven more by investment than by traditional jewelry and silverware, with inflows into silver-backed Exchange-Traded Funds (ETFs) rising to record highs.
Source: Reuters
