India’s silver imports plunged 87 per cent in May from a year earlier to their lowest level in more than three years, government data showed yesterday, 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 80pc 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 $566.22m a year earlier, according to data compiled by the Ministry of Commerce and Industry. In volume terms, imports dropped 94pc year-on-year to 33 metric tons, the lowest since February 2023.
India in mid-May restricted imports of silver in nearly all forms with immediate effect. 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 15pc from 6pc as part of efforts to curb precious metals imports and reduce pressure on foreign exchange reserves amid elevated oil prices.
“There is demand, but imports have become difficult due to the restrictions, and local premiums have started to rise,” said a Mumbai-based dealer with a private bullion-importing bank.
India spent a record $12 billion on silver imports in the 2025/26 financial year ended March, compared with $4.8bn a year earlier.
India imports silver mainly from the UAE, Britain and China.
Taxes on diesel and jet fuel exports raised
India has raised windfall taxes on diesel exports to 14 rupees ($0.1478) and that on aviation fuel to 12.5 rupees per litre, the government said in a statement yesterday, with the prices applicable for the next fortnight starting today
The export duty on petrol would remain unchanged, the government said. The export duty on diesel increased from an earlier 13.5 rupees while that on aviation fuel increased from an earlier 9.5 rupees
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