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New Delhi: Amidst the increasing tension in West Asia, the Central Government has taken a big decision regarding the import of silver. The government has immediately banned the import of certain types of silver bars. Directorate General of Foreign Trade i.e. DGFT has issued a new notification regarding this. According to this, silver bars with 99.9 percent purity have been removed from the free category and put in the restricted category. Apart from this, other silver bars have also been included in the restricted import category.

Commerce Ministry changed the rules  

According to media reports, this step has been taken under the revised import policy of the Commerce Ministry. Its purpose is to control the import of silver in the country. The notification clearly states that the new rules to silver import have come into effect with immediate effect.

The government had earlier also made a big increase in the import duty on precious metals. Also, under the Advance Authorization Scheme, a limit of 100 kg was fixed on the import of gold. This scheme allows jewelery exporters to import raw materials at zero duty.

Strictness on gold import also   

In fact, the Central Government has also tightened the rules for issuing and monitoring advance authorization for the import of gold. Earlier there was no limit on import of gold under this scheme. In view of the increasing import bill due to the West Asia crisis, the government has increased the import duty on gold and silver from 6 percent to 15 percent.

Under the new rules implemented from May 13, the import duty on platinum has also been increased from 6.4 percent to 15.4 percent. The duty structure on gold and silver cord, coins and other items has also been changed.

Decision after PM Modi’s appeal   

Let us tell you that this step has been taken a few days after the appeal of Prime Minister Narendra Modi. The PM had asked people not to buy gold for the next one year and not to travel abroad unless absolutely necessary. The government wants to reduce unnecessary expenditure of foreign exchange.

Why is the government taking strict action?   

It is noteworthy that India imports gold and silver in large quantities. The West Asia crisis and rising crude oil prices have already increased the import bill. Large imports of precious metals put pressure on foreign exchange reserves. Like oil and gas, gold and silver are also imported in dollars. More imports means more dollars spent. When import expenditure exceeds exports, trade deficit increases. This weakens the rupee and affects the economy. For this reason, the government has banned the import of silver bars and increased the import duty.