India’s silver jewellery manufacturers are likely to encounter fewer procurement bottlenecks following the decision of the Directorate General of Foreign Trade (DGFT) to simplify the issuance of import authorizations for specified silver products. The move introduces a self-declaration-based procedure for eligible applicants, with the objective of reducing processing time, and improving the ease of doing business.

The relaxation comes against the backdrop of tighter import controls introduced earlier this year, when the government shifted the import policy for specified silver products from ‘Free’ to ‘Restricted’, making import authorizations mandatory under the applicable provisions. The change had introduced an additional procedural requirement for businesses dependent on imported silver, with potential implications for sourcing schedules and production planning.

Faster Authorizations, Greater Predictability

For manufacturers operating with tight production schedules, the principal benefit lies in the possibility of securing import authorizations more efficiently. Delays in obtaining approvals can complicate procurement planning, affect the timing of raw-material availability, and create uncertainty around production commitments.

Commenting on the development, Kirit Bhansali, Chairman, Gem & Jewellery Export Promotion Council (GJEPC), says, “The move is a positive step towards improving ease of doing business for silver jewellery manufacturers and importers. Following the change in the import policy for specified silver products from “Free” to “Restricted” under DGFT Notification numbers 17/2026-27 and 19/2026-27, importers were required to obtain authorizations, with applications subject to scrutiny and verification.

“Under the simplified procedure, applications accompanied by a self-declaration confirming that imports will be made at the generally applicable rate of duty, without claiming concessions, can be considered for expedited disposal. This is expected to reduce processing time for eligible applicants.” 

The distinction is important: the revised procedure facilitates faster consideration of qualifying applications, rather than removing the authorization requirement altogether. Applicants must still complete the prescribed formalities, and provide a reasoned justification for the quantity and value of imports sought. DGFT also retains the right to seek additional documents, or conduct detailed scrutiny, where necessary.

Sharing his insights, Ujjwal Derewala, Chairman, Jaipur Silver Association, says, “We welcome this initiative to simplify and expedite the process of silver import authorization. Jaipur is one of the country’s leading centres for silver jewellery manufacturing and trading, with thousands of artisans, manufacturers, and traders dependent on this industry for their livelihood.

Silver is the primary raw material for our industry. Reducing the time required to obtain import authorization will make it easier for manufacturers to plan their raw material requirements, and procure silver efficiently. This will help Jaipur’s jewellery manufacturers focus on delivering even better craftsmanship to markets across the world.”

Easier Access, But No Direct Cost Advantage

While the procedural change could help manufacturers secure imported silver with greater predictability, it does not alter the customs duties applicable to their imports. Consequently, the immediate benefit is operational, rather than financial.

“The simplified procedure can improve access to imported silver by making the authorization process more efficient and predictable, potentially reducing supply delays and disruptions to manufacturing schedules,” Bhansali says.

Adds Derewala, “This will enhance the competitiveness of Jaipur’s silver industry. Timely import approvals will enable our manufacturers to offer better prices, and ensure timely deliveries. This will strengthen our ability to compete not only in the domestic market, but also in international markets. Jaipur Silver Association is committed to working closely with the government and industry stakeholders in this direction.”

However, Bhansali cautions against interpreting the relaxation as a measure that will materially lower procurement costs. “It has to be noted that this is unlikely to significantly reduce procurement costs, as customs duties remain unchanged. Any cost benefits would largely be indirect, arising from better inventory management, improved production planning, and reduced sourcing uncertainty, rather than lower import duties or landed costs.”

Who Benefits From the Relaxation?

Silver jewellery manufacturers, exporters, and eligible importers who rely on imported silver are among the businesses likely to benefit from the simplified procedure. Those whose production schedules depend on timely access to imported raw materials could gain from a more predictable authorization process.

The extent of the benefit, however, will depend on whether applications meet the prescribed conditions and how effectively the revised procedure reduces processing delays in practice.

“The key constraints remain the restricted import regime and the mandatory authorization requirement. The measure should, therefore, be viewed as a trade-facilitation step that can improve operational efficiency, rather than as a direct cost-reduction measure,” Bhansali adds. 

Sharing his perspective, Gaurav Jain, Valentine Silver International, says, “While Trade Notice No. 30/2026-27 successfully establishes a streamlined, self-declaration framework for silver bullion imports, structural constraints continue to impact the grassroots MSME and artisan ecosystem. To protect employment and export competitiveness, the Ministry should consider facilitative measures.” 

Jain goes on to list the measures, adding, “The six-month authorization validity period should be extended to 12 months to accommodate global shipping uncertainties and seasonal manufacturing cycles. Clear and simplified job-work tracking guidelines are also needed to facilitate the movement of raw materials across distributed artisan networks without the risk of compliance defaults. 

“Specialized, low-cost working capital or bullion banking credit lines through public sector lenders should be introduced to ease cash-flow pressures arising from duty payments. Additionally, compliance thresholds should be relaxed to enable smaller registered manufacturers to access institutional trading platforms without high-volume requirements. They should be able to get access to institutional trading platforms without high-volume requirements.”

A Procedural Relief, Not a Policy Reversal

The DGFT relaxation represents a calibrated easing of the administrative burden created by the restricted import regime. It seeks to facilitate legitimate trade through faster processing for eligible applicants, while retaining regulatory oversight, and the requirement to obtain authorization.

For India’s silver jewellery industry, the significance will ultimately lie in how much the revised procedure improves the reliability of raw-material sourcing. More predictable approvals could help manufacturers plan production and inventory with greater confidence, particularly where imported silver is integral to their operations.

The measure does not, however, address the broader cost pressures associated with importing silver. With customs duties unchanged, and authorization requirements still in place, its immediate contribution is to streamline the process, rather than make silver cheaper.