India’s decision to allow 6,500 tonnes of silver imports over six months weakens the case for retaining quantitative restrictions, the Global Trade Research Initiative said, arguing that the quota is almost as large as the country’s entire 2025-2026 import volume.

The Directorate General of Foreign Trade on October 22 notified a six-month silver import quota of 6,500 tonnes, equivalent to about 89% of the 7,334 tonnes imported in 2025-2026, GTRI said.

“If the government allows such large imports, it should abolish quotas while retaining customs duty,” GTRI said in a report dated October 23.

The research group said the quota system adds costs for businesses through repeated applications, uncertain allocations and delays in approvals.

India’s silver imports rose about 150% to $12.1 billion in 2025-2026 from $4.8 billion a year earlier, according to GTRI.

The government raised customs duty on silver to 15% from 6% on May 13 and placed the metal on the restricted import list in June, making prior permission mandatory.

Imports subsequently fell about 25% to $2.6 billion during April-September 2026 from $3.4 billion a year earlier. September imports declined 49% on year, GTRI said.

The group said permitting nearly the previous full year’s import volume within six months raises questions about the purpose of the restrictions and the assessment of underlying market demand.

GTRI said the government should review the quota system and remove quantitative restrictions if it is comfortable with large import volumes, while retaining the applicable customs duty, said Ajay Srivastava, the founder of GTRI.