May 16 (Reuters) – India has curbed imports of certain silver products with immediate effect, shifting them from the “free” to “restricted” category, according to a notification issued by the government on Saturday.
The move is part of the government’s efforts to curb imports of precious metals to ease pressure on the country’s foreign exchange reserves caused by higher oil prices.
The restriction on imports applies to certain high-purity silver bars and certain other grades, the notification said.
On Tuesday, India raised import tariffs on gold and silver to 15% from 6% in a move that could dampen demand in the world’s second-largest consumer of precious metals but narrow the country’s trade deficit and support the rupee.
India, which is the world’s largest consumer of silver, uses it in jewellery, coins, bars and industrial applications ranging from solar energy to electronics.
Over the past year, demand has been driven more by investment than traditional jewellery and silverware, with inflows into silver ETFs rising to a record high.
(Reporting by Anusha Shah in Bengaluru; Editing by Louise Heavens and Joe Bavier)