India’s silver imports hit three-year low in May after import restrictions

India's silver imports reportedly dropped sharply in May 2026, reaching their lowest level in more than three years after the government introduced stricter import rules. Official data released by the Ministry of Commerce and Industry showed that silver imports fell by 87% compared to the same month last year.

The value of silver imports declined to $75.57 million (₹ 715 to ₹ 716 crores) in May from $566.22 million (₹5,362 crore) a year earlier. In volume terms, imports fell by 94% to only 33 metric tons, marking the lowest monthly import level since February 2023. The sharp decline reportedly came after the Indian government restricted imports of silver in nearly all forms in mid-May. The restrictions were implemented immediately as part of efforts to control the inflow of precious metals into the country.

The government tightened the rules further by placing silver grain and silver powder under the restricted category. Importers are now required to obtain prior authorization before bringing these products into India. The government has also increased import duties on gold and silver from 6% to 15%. Officials believe that higher duties and stricter import controls will help reduce the country's trade deficit

Industry experts reportedly say that demand for silver remains strong despite the fall in imports. However, the new restrictions have made it more difficult for traders and banks to import silver, resulting in reduced supply and rising local premiums in the domestic market. India depends heavily on foreign supplies to meet its silver needs, importing more than 80% of its total demand.

India spent a record $12 billion (₹1,200 crores) on silver imports during the 2025-26 financial year ending in March, compared with $4.8 billion (₹45,408 crore) in the previous year. The sharp rise in imports had raised concerns about the growing import bill and its impact on the economy.

In recent years, investment demand has become a major driver of silver consumption, with inflows into silver exchange-traded funds (ETFs) reaching record levels. India mainly imports silver from the United Arab Emirates, Britain, and China.