India Restricts Silver Imports to Reduce Import Bill and Support Rupee

India has imposed immediate restrictions on imports of silver in nearly all forms as part of efforts to reduce the country’s import bill and support the weakening rupee. The government has moved silver bars with 99.9% purity and other semi-manufactured silver products into the restricted category, impacting more than 90% of the country’s silver imports. India is the world’s largest silver consumer and relies on imports for over 80% of its demand.

The move is expected to tighten domestic silver supplies and push local prices higher in the coming weeks. Industry experts believe the restrictions could reduce investment-driven imports while allowing limited shipments for industrial use. The government had earlier increased import duties on gold and silver to 15% from 6% in an attempt to ease pressure on foreign exchange reserves amid rising oil prices.

India spent a record $12 billion on silver imports in the 2025-26 financial year, sharply higher than the previous year’s $4.8 billion. In April alone, silver imports surged 157% year-on-year to $411 million. Apart from jewellery and silverware, silver demand in India has also been driven by industrial sectors such as solar energy and electronics, along with strong inflows into silver ETFs. India mainly imports silver from the United Arab Emirates, United Kingdom and China.