India’s imports of silver fell 87 per cent in May compared to the same month last year, to their lowest level in over three years, as the world’s biggest buyer of the metal, imposed restrictions on imports in almost all forms, according to the government data.
Lower imports from India, which purchases more than 80 per cent of its silver from overseas, could have an impact on world prices while also reducing the country’s economic imbalance and relieving pressure on the rupee.
The Ministry of Commerce and Industry’s data shows that imports of silver decreased to USD 75.57 million in May from USD 566.22 million a year earlier. Imports fell 94 per cent year-over-year (YoY) to 33 metric tonnes, the lowest level since February 2023.
In mid-May, India imposed immediate restrictions on imports of silver in almost all forms. Silver grain and powder were added to the restricted category earlier this month, and prior import authorisation was now required, significantly tightening the regulations.
In an effort to limit imports of precious metals and ease the strain on foreign exchange reserves in the face of rising oil costs, the government has also increased import tariffs on gold and silver from 6 per cent to 15 per cent.
In the 2025–2026 fiscal year that concluded in March, India spent a record USD 12 billion on silver imports, up from USD 4.8 billion the previous year.
Usually, silver is used in jewelry, coins, bars, and industrial products including electronics and solar energy in India.
With inflows into silver ETFs reaching a record high, demand over the previous year has been mostly driven by investment purchases rather than conventional jewelry and silverware consumption.
China, the United Arab Emirates and Britain are India’s top suppliers of silver.
