Govt restricts imports of certain silver jewellery to curb “misuse” of FTAs

According to the DGFT, the restrictions have been introduced in the wake of a steep rise in imports of plain silver jewellery availing preferential duty exemptions between April–June 2024-25 and April–June 2025-26. Such imports, circumventing FTA provisions, were adversely affecting domestic manufacturers and posing a challenge to employment in the jewellery sector, the ministry said.

“Under the new framework, import of plain silver jewellery falling under CTH 7113 will now be permitted only against a valid import authorisation issued by DGFT. This measure is designed to strike a balance between facilitating genuine trade and preventing unfair practices by certain importers exploiting FTA provisions,” the ministry said.

The government believes that the decision will provide a level playing field for India’s jewellery manufacturers, safeguard the interests of small and medium businesses, and secure livelihood opportunities for workers in the sector.

Meanwhile, Gem & Jewellery Export Promotion Council (GJEPC) chairman Kirit Bhansali met Finance Minister Nirmala Sitharaman on Wednesday to seek urgent relief measures for the gem and jewellery sector, which has been severely impacted by the recent 50 per cent tariff imposed by the United States.

“We are pleased that India–US trade discussions have resumed, which is encouraging news. However, the process may take time, and until a resolution is achieved, it is essential to introduce relief measures to help the sector survive and sustain employment,” Bhansali said.

GJEPC said it has requested further interventions from the government to help the sector survive and sustain employment until the ongoing India–US trade negotiations are concluded. “These include measures such as allowing reverse job work and DTA sales by SEZ units, extending export obligation periods for US shipments, providing an interest moratorium on packing credit and working capital loans, and offering liquidity support to exporters,” the council said.