The fall in imports could impact global silver prices, as India meets over 80% of its demand through imports. | Photo Credit: Edgar Su

India's silver imports plunged 87% in May from a year earlier ​to their lowest level in more than three years, ‌government data showed on Monday, after the world's ​largest consumer of the metal tightened ⁠curbs on imports in nearly all forms.

Lower imports by India, which meets more than 80% of its silver demand through ‌overseas purchases, could weigh on global prices, while helping narrow the country's trade deficit and ‌ease pressure on the rupee.

Silver imports ‌fell ⁠to $75.57 million in May from $566.22 million a year ⁠earlier, according to data compiled by the Ministry of Commerce and Industry. In volume terms, imports dropped 94% year-on-year to 33 ​metric tons, the ‌lowest since February 2023.

India in mid-May restricted imports of silver in nearly all forms with immediate effect. Earlier this month, it further tightened the rules ‌by adding silver grain and powder to ​the restricted category and requiring prior import authorisation.

The government has also raised import duties ⁠on gold and silver to 15% from 6% as part of efforts to curb precious metals imports and ‌reduce pressure on foreign exchange reserves amid elevated oil prices.

"There is demand, but imports have become difficult due to the restrictions, and local premiums have started to rise," said a Mumbai-based dealer with a private bullion-importing bank.

India spent a record $12 ‌billion on silver imports in the 2025/26 financial year ended March, ​compared with $4.8 billion a year earlier.

Silver is used in India for jewellery, coins, bars ⁠and industrial applications ranging from solar energy to electronics.

Over the ⁠past year, demand has been driven more by investment buying than traditional jewellery and silverware consumption, ‌with inflows into silver ETFs climbing to a record high.

India imports silver mainly from the ​United Arab Emirates, Britain and China.

Published on June 15, 2026