India’s silver imports hit over three-year low in May after import curbs

India’s silver imports plunged 87% in May from a year earlier to their lowest level in more than three years, government data showed on Monday, after the world’s largest consumer of the metal tightened curbs on imports in nearly all forms.Lower imports by India, which meets more than 80% of its silver demand through overseas purchases, could weigh on global prices, while helping narrow the country’s trade deficit and ease pressure on the rupee.

Silver imports fell to $75.57 million in May from $566.22 million a year earlier, according to data compiled by the Ministry of Commerce and Industry. In volume terms, imports dropped 94% year-on-year to 33 metric tons, the lowest since February 2023.
India in mid-May restricted imports of silver in nearly all forms with immediate effect. Earlier this month, it further tightened the rules by adding silver grain and powder to the restricted category and requiring prior import authorisation.
The government has also raised import duties on gold and silver to 15% from 6% as part of efforts to curb precious metals imports and reduce pressure on foreign exchange reserves amid elevated oil prices.”There is demand, but imports have become difficult due to the restrictions, and local premiums have started to rise,” said a Mumbai-based dealer with a private bullion-importing bank.

India spent a record $12 billion on silver imports in the 2025/26 financial year ended March, compared with $4.8 billion a year earlier.

Silver is used in India for jewellery, coins, bars and industrial applications ranging from solar energy to electronics.

Over the past year, demand has been driven more by investment buying than traditional jewellery and silverware consumption, with inflows into silver ETFs climbing to a record high.

India imports silver mainly from the United Arab Emirates, Britain and China.