𝗜𝗻𝗱𝗶𝗮 𝗦𝗶𝗹𝘃𝗲𝗿 𝗜𝗺𝗽𝗼𝗿𝘁𝘀 𝗥𝗲𝗮𝗰𝗵 𝗧𝗵𝗿𝗲𝗲-𝗬𝗲𝗮𝗿 𝗟𝗼𝘄
India silver imports fell to a three-year low in May. Official data from the Ministry of Commerce and Industry shows a sharp decline in inflows.
Key statistics for May:
- Import value fell 87% year-on-year to $75.57 million.
- Import volume dropped 94% to 33 metric tonnes.
- This represents the lowest volume level since February 2023.
Government actions causing the decline:
- The government restricted silver imports in nearly all forms in mid-May.
- Silver grain and powder now require prior import authorization.
- Import duties on gold and silver increased from 6% to 15%.
Economic context:
- India meets over 80% of silver demand through imports.
- India spent $12 billion on silver imports during the 2025-26 financial year.
- The previous year saw $4.8 billion in silver import spending.
- Lower imports aim to reduce the trade deficit and support the rupee.
- Restrictions aim to protect foreign exchange reserves.
Silver uses in India:
- Jewellery and coins.
- Bars.
- Solar energy components.
- Electronics.
Recent trends show investment demand through exchange-traded funds (ETFs) is higher than traditional jewellery demand. India imports silver mainly from the United Arab Emirates, the United Kingdom, and China.