India Limits Silver Imports

India has implemented immediate restrictions on most silver imports, according to a government order issued on Saturday, May 16. This measure aims to reduce the nation's import bill and alleviate pressure on the Indian rupee. The restrictions specifically target silver bars with 99.9% purity and all other semi-manufactured forms of silver, which collectively constituted over 90% of India's silver imports in the last fiscal year.

This policy change is anticipated to decrease the volume of silver entering India and tighten domestic supplies. Consequently, local market premiums for silver are expected to rise. India, which fulfills more than 80% of its silver consumption through imports, spent a record $12 billion on silver imports in the 2025/26 financial year, a significant increase from $4.8 billion the previous year. In April alone, silver imports surged by 157% year-on-year to $411 million.

The restriction follows an earlier move this week where India raised import tariffs on both gold and silver to 15% from 6%. These actions are part of a broader government strategy to curb overseas purchases of precious metals and manage foreign exchange reserves, which have been impacted by higher oil prices. The government appears to be prioritizing limited silver imports for industrial applications while discouraging investment-driven imports in the short term.