India’s Silver Imports Skyrocket 129% Amid Supply Shortage and Record Prices

Silver is increasingly influencing India’s import dynamics in the current fiscal, even as its overall value remains well below that of gold and crude oil, as per news reports. 

A sharp rise in prices and strong industrial demand have pushed silver imports significantly higher, making the metal a new pressure point for the trade balance. 

Sharp Jump in Silver Imports Despite Seasonality 

Silver imports surged strongly in December, rising nearly 80% over the previous month to about $0.76 billion.  

On a cumulative basis, shipments during April–December jumped nearly 129% year-on-year to $7.77 billion, well beyond the typical festive-season spike. The magnitude of the increase stands out even as broader import growth has remained more moderate. 

Contrast With Gold and Petroleum Trends 

The silver surge contrasts with trends in other major import categories. Gold imports declined in December and showed only marginal growth over the nine-month period, while petroleum imports rose modestly during the month even as cumulative volumes fell. This divergence highlights silver’s growing role in shaping import dynamics. 

Global Supply Curbs and Price Rally Drive Volumes 

Higher imports have been closely linked to a sharp rise in global silver prices. Anticipation of tighter export controls by a major producing nation, combined with geopolitical uncertainty and safe-haven demand, has pushed prices close to record levels. Elevated prices have encouraged front-loaded buying, amplifying import volumes. 

Industrial Demand Reshapes Silver’s Importance 

Silver’s role has expanded beyond investment and jewellery, with industrial applications now a major driver.  

Solar manufacturing alone accounted for a significant share of global silver demand in 2025, while electrical and electronics uses continue to represent a large and stable portion. This structural shift has strengthened long-term demand visibility. 

Diversification Push Through Trade Agreements 

To mitigate concentration risks, India is accelerating trade negotiations with key silver-producing economies.  

The objective is to diversify sourcing, lower transaction costs and ensure steady supplies for critical sectors such as renewable energy, electronics and electric mobility.  

Read More: Silver’s Big Run in 2025: What Drove Prices to Record Highs in October-December 2025? 

Conclusion 

Silver is fast emerging as a strategic import for India, driven by industrial demand and global supply constraints. While its absolute import value remains smaller than traditional heavyweights, sustained price strength and rising volumes suggest it will play a more prominent role in shaping India’s trade balance going forward.  

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