India has tightened control over silver imports by moving high-purity silver into the “restricted” category. This means companies now need special government approval and licenses before bringing large amounts of silver into the country.

The decision comes after a huge rise in silver imports, which reportedly jumped by around 157% in a short period. At the same time, higher global oil prices are increasing India’s import costs because the country depends heavily on imported energy.

When a country spends more foreign currency on imports like oil, gold, or silver, pressure can build on its forex reserves and local currency. In this case, the move is being seen as an effort to reduce unnecessary outflow of foreign exchange and help support the Indian rupee.

India also increased import duties on gold and silver from 6% to 15%, making precious metals more expensive to import. Higher duties can slow down demand and reduce the amount of foreign currency leaving the country.

Overall, the government’s focus appears to be on protecting forex reserves, managing trade pressure, and prioritizing energy-related spending during a period of rising global commodity costs.

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