India must significantly enhance its silver processing capabilities and diversify its sources of imports to reduce dependence on foreign refined metal, the Global Trade Research Initiative (GTRI) has said, highlighting concerns over strategic vulnerabilities and supply chain risks.
According to the GTRI analysis, although India is one of the world’s largest consumers of silver — primarily in electronics, solar energy, and industrial applications — it remains heavily dependent on importing refined silver rather than processing it domestically. In FY25, India exported just $478.4 million worth of silver products while importing about $4.83 billion, underscoring a significant trade imbalance.
Key points from the GTRI recommendations:
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Expand domestic refining and recycling: India should build capacity to process silver from ore, increasing value addition and reducing reliance on imported finished metal.
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Secure long-term overseas supplies: Establishing stable, long-term mining partnerships abroad would help insulate India from global supply shocks.
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Diversify import sources: Diversifying beyond a few trading hubs can reduce vulnerability to export controls and geopolitical tensions.
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Recognize silver as a strategic industrial metal: Beyond its traditional use as a precious metal, silver plays a key role in energy transition technologies and advanced manufacturing, making stable access vital for industrial resilience.
GTRI cautions that India’s heavy dependence on imported refined silver — around 21.4% of global trade in 2024 — leaves it exposed to supply volatility, especially as major processors like China tighten export controls under a new licensing regime introduced from January 1, 2026.
The institute’s findings come against the backdrop of sharply rising silver imports in 2025, with total inbound shipments estimated at $9.2 billion, a 44% increase over the previous year, highlighting the urgency of addressing the country’s processing deficit.
Policy experts say that boosting domestic processing and diversifying suppliers could not only strengthen India’s industrial base but also lower costs and enhance technological self-reliance in critical sectors such as renewable energy and electronics manufacturing.