India’s silver imports have jumped sharply as global price spikes and tightening supply conditions pushed buyers to shore up stock, official data and market watchers said on Friday.
According to trade figures, silver imports in the April–December period of the current fiscal year surged nearly 129 % to about $7.77 billion, up from $3.39 billion in the year-ago period. December alone saw imports climb nearly 80 % month-on-month to $760 million.
Prices and supply pressures drive demand
The dramatic rise in imports comes as silver prices have rallied to multi-year highs, driven by tighter global supplies and strong safe-haven demand. China — a dominant silver producer and processor — introduced stricter export controls from January 1, requiring approvals for shipments, which stoked price gains and raised supply uncertainty. As of mid-January, silver was trading near record levels around $91–$93 an ounce on international markets.
Silver’s appeal has grown beyond its traditional role in jewellery and investment. Market analysts note rising industrial demand — particularly for solar panels, electronics, and electric vehicles — has lifted consumption globally.
Trade balance and broader import trends
The silver import surge stands out against the broader import picture, where gold imports contracted in December and petroleum imports showed modest growth. India’s merchandise trade deficit widened as import growth outpaced exports in the first nine months of the fiscal year.
Supply concerns and future policy focus
Heavy reliance on China for silver supply — accounting for over 40 % of India’s imports in 2025 — has renewed concerns about supply concentration and price volatility. In response, policymakers are expanding free trade agreement talks with major silver-producing countries such as Peru and Chile to diversify sourcing, reduce tariff costs, and secure long-term supply.
Market participants expect silver prices to remain firm through 2026, although short-term fluctuations are possible given global economic and geopolitical uncertainties.
