India Restricts 99.9% Silver Imports as Balance-of-Payments Deficit Seen Widening to $65 Billion
Updated
Updated · Reuters · Jun 3
India Restricts 99.9% Silver Imports as Balance-of-Payments Deficit Seen Widening to $65 Billion
3 articles · Updated · Reuters · Jun 3
Summary
India this week moved 99.9% silver bars and other semi-manufactured silver into the restricted import category, tightening controls to curb dollar outflows as the rupee sits at record lows.
HSBC expects the balance-of-payments deficit to widen to $65 billion in 2026-27 from an estimated $35 billion in 2025-26, driven by higher oil prices after the late-February Iran conflict and persistent foreign selling of Indian stocks.
May measures already raised effective import taxes on gold and silver to 15% from 6%, while duty-free gold imports for jewellery exports were capped at 100 kilograms per licence.
The broader response also includes RBI cuts in February and March to banks' net open forex position limits, while Prime Minister Narendra Modi has urged citizens to avoid unnecessary foreign travel and work from home to save fuel.