India has tightened its silver import regulations, moving most imports from "free" to "restricted" status, requiring government licenses for entry. This follows a recent increase in customs duties on precious metals from 6% to 15%, effective May 13, with the total tax burden on imported silver now exceeding 18%. The changes aim to curb foreign exchange outflows as silver imports surged 150% in value during FY 2025-26, contributing to a widening current account deficit. The restrictions, which apply broadly except for certain Export Oriented Units and Special Economic Zones, have already led to a 7% rise in domestic silver prices. This policy shift reverses a previous strategy of reduced tariffs intended to combat smuggling and support the jewelry sector. The new barriers could potentially revive gray-market activities as legal import costs rise, impacting both global silver markets and domestic jewelers.