Following the Indian rupee's decline to a record low, the government has introduced multiple measures to stabilize foreign exchange reserves and defend the local currency. One key step involves tightening controls on silver imports.

The Indian government issued a notification on Saturday, reclassifying silver bar imports from a freely importable category to a restricted one. This change means that only shipments with a license issued by the Directorate General of Foreign Trade will be permitted entry, with the new rule taking immediate effect. The Modi administration had previously decided to more than double import duties on gold and silver, aiming to curb demand for precious metals, support the rupee's exchange rate, and mitigate economic shocks from Middle East tensions.

Prime Minister Modi had earlier made a rare appeal for the public to reduce gold purchases to help bolster foreign exchange reserves. Conflict in Iran has driven a sharp surge in oil prices, significantly increasing India's import costs. This week, the Indian government raised petrol and diesel prices for the first time in four years. Additionally, the Reserve Bank of India has proposed a substantial reduction in taxes for foreign investors purchasing Indian bonds.