Can India’s silver imports recover amid ongoing restrictions?

Silver Import Collapse and Market Dynamics
- India's silver imports fell to 47t in May 2026, the lowest monthly figure since July 2023 (p. 1).
  - Total silver bullion imports for January to May 2026 stood at 1,837t, a 16% decrease compared to the previous year (p. 1).
  - The domestic market shifted from a discount to a premium of $6.3/oz by mid-June as available supply was absorbed and imports remained restricted (pp. 1, 5).
Factors Influencing Domestic Demand
- High prices and increased volatility have weighed on jewelry, silverware, and investment demand (p. 1).
  - Silver prices in the first half of 2026 were 166% higher year-on-year, and the Adhik Maas period (May 17–June 15) further reduced wedding-related purchases (p. 3).
  - Indian silver ETPs experienced outflows of 150t starting in February, following record-high holdings of 3,800t in January 2026 (pp. 1, 3).
Government Regulatory Measures and Trade Restrictions
- The Indian government implemented restrictive measures to reduce the Current Account Deficit (CAD) (p. 3).
  - Standard import duties for gold and silver were increased from 6% to 15%, while platinum duties rose from 6.4% to 15.4% (p. 3).
  - To close loopholes, the government restricted silver grain imports under the India-UAE CEPA and mandated that all silver imports require a license from the Directorate General of Foreign Trade (DGFT) (pp. 3, 5).
Gold and Electric Vehicle Market Highlights
- The domestic gold market shifted to a $2/oz premium in June, despite Indian gold ETFs recording their first monthly net outflow of nearly 380kg in May (p. 1).
- Electric vehicle (EV) sales in India saw significant growth, jumping 51% year-on-year in May to reach 271,000 units (p. 1).

Silver Import Collapse and Market Dynamics
- India's silver imports fell to 47t in May 2026, the lowest monthly figure since July 2023 (p. 1).
  - Total silver bullion imports for January to May 2026 stood at 1,837t, a 16% decrease compared to the previous year (p. 1).
  - The domestic market shifted from a discount to a premium of $6.3/oz by mid-June as available supply was absorbed and imports remained restricted (pp. 1, 5).
Factors Influencing Domestic Demand
- High prices and increased volatility have weighed on jewelry, silverware, and investment demand (p. 1).
  - Silver prices in the first half of 2026 were 166% higher year-on-year, and the Adhik Maas period (May 17–June 15) further reduced wedding-related purchases (p. 3).
  - Indian silver ETPs experienced outflows of 150t starting in February, following record-high holdings of 3,800t in January 2026 (pp. 1, 3).
Government Regulatory Measures and Trade Restrictions
- The Indian government implemented restrictive measures to reduce the Current Account Deficit (CAD) (p. 3).
  - Standard import duties for gold and silver were increased from 6% to 15%, while platinum duties rose from 6.4% to 15.4% (p. 3).
  - To close loopholes, the government restricted silver grain imports under the India-UAE CEPA and mandated that all silver imports require a license from the Directorate General of Foreign Trade (DGFT) (pp. 3, 5).
Gold and Electric Vehicle Market Highlights
- The domestic gold market shifted to a $2/oz premium in June, despite Indian gold ETFs recording their first monthly net outflow of nearly 380kg in May (p. 1).
- Electric vehicle (EV) sales in India saw significant growth, jumping 51% year-on-year in May to reach 271,000 units (p. 1).

Can India’s silver imports recover amid ongoing restrictions?

Interactive reader

Can India’s silver imports recover amid ongoing restrictions?

Interactive reader