India’s Silver Imports Crater 87% Under New Regulatory Pressure

The contraction marks a significant shift for a nation that typically sources over 80% of its silver from global markets. In May, import values plummeted to $75.57 million from $566.22 million during the same period last year, while total volume sank 94% to just 33 metric tons. This sudden cooling of domestic supply could exert downward pressure on international silver prices.

New Delhi has moved to restrict the flow of precious metals by reclassifying silver grains and powder as restricted items requiring prior authorization. These hurdles are compounded by a steep tax hike, with import duties on gold and silver climbing to 15% from 6%. While local demand remains persistent, the regulatory barriers are forcing domestic prices higher. A bank dealer confirmed that despite the appetite for the metal, the administrative burden has made sourcing increasingly difficult, driving up local premiums.