India Must Scale Silver Refining and Diversify Global Sourcing: GTRI

As per PTI report, India has been advised to strengthen its domestic silver processing and reduce dependence on specific countries for imports.  

The recommendation comes in view of China introducing a licensing system for silver exports from January 1, 2026, which may impact global supply flows. 

India’s Silver Trade Deficit and Import Dependence 

According to data from FY25, India exported silver products amounting to $478.4 million, while its imports reached $4.83 billion. This large gap underlines a significant reliance on foreign sources for silver supply.  

With China accounting for more than 30% of global silver processing, the move to shift silver exports under a licence-based mechanism could affect India’s access to the metal. 

China’s revised policy could result in restricted trade volumes or delayed exports, prompting the need for India to diversify its silver import routes and sources, as well as build stronger capabilities in indigenous refining and value-added product manufacturing. 

China’s Export Licensing Rule and Its Relevance to India 

China, from January 1, 2026, will place silver trade under a licensing framework, impacting global buyers including India.  

Silver is critical to various Indian industries, including electronics, solar energy, and jewellery. India’s current minimal silver processing capacity also increases its vulnerability to overseas policy changes like the one by China. 

The General Trade Research Institute (GTRI) raised concerns that India’s import-heavy silver strategy would need reevaluation to maintain stable supply chains.  

A robust mechanism for domestic silver product production could reduce the trade gap and limit exposure to external disruptions. 

Read More: India on Track for 6.9% GDP Growth in FY27 Amid Goldilocks Scenario: Ind-Ra! 

Steps Towards Building Local Capacity and Market Balance 

Expanding domestic silver refining units and encouraging downstream silver product development could play a role in bridging the trade imbalance.  

Encouraging bilateral partnerships and widening sourcing options may also help offset short-term supply constraints due to the Chinese export transition. 

Increased silver processing within India could contribute not only to narrowing the exportimport gap but also support sectors relying heavily on silver inputs. 

Conclusion 

India’s current silver trade pattern reveals a considerable dependency on imports, particularly from countries like China. With upcoming export restrictions from Chinese authorities through a licensing model, experts have recommended India to enhance its local processing and diversify supply channels to manage potential shortfalls in availability. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities or companies mentioned are only examples and not recommendations. This does not constitute a personal recommendation or investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.