India’s silver imports have dropped sharply after the government introduced licensing requirements in May, a move aimed at protecting foreign-exchange reserves. The change has disrupted the normal flow of shipments into the country and triggered a sudden slowdown in arrivals.
Data cited by Metals Focus shows the scale of the decline, with imports falling from 747 tons in January to an estimated 29 tons in June. The steep drop points to a major break in supply patterns for one of the world’s key silver markets.
The disruption appears to be tied to the new permit system, as many banks have yet to obtain the approvals needed to import silver. With fewer shipments reaching the domestic market, supply has tightened and buyers are facing a more constrained trading environment.
That shortage has pushed local silver premiums to a multi-month high, a sign that demand is running ahead of immediately available supply. Until more import permits are secured and shipments normalize, the market is likely to remain under pressure from limited availability and elevated pricing.
