India’s silver imports crashed 87% as import curbs choke supply

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 restricted imports of silver in nearly all forms with immediate effect in mid-May. 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-metal imports and reduce pressure on foreign-exchange reserves amid elevated oil prices.