Silver imports surge 129% to $7.77 billion as precious metal demand keeps India’s import bill elevated

India’s silver imports surged 128.95 per cent to $7.77 billion during April–December 2025, compared with $3.39 billion in the corresponding period a year ago, even as the country’s overall imports rose 19.2 per cent year-on-year to $71.24 billion in January 2026, highlighting sustained demand for precious metals and their growing impact on the import bill.

The sharp rise in silver imports was driven by both higher volumes and elevated global prices, indicating strong domestic demand across investment and industrial segments. Import volumes rose more than 56 per cent during the period, reflecting increased consumption and restocking by traders and manufacturers.

Higher bullion imports have contributed to elevated import levels in recent months, with India’s trade deficit widening to around $34.6 billion in January, reflecting increased outflows on account of precious metals and other key commodities. Precious metals remain a significant component of India’s non-oil import basket, influencing overall trade dynamics and foreign exchange outflows.

Gold imports, in comparison, recorded relatively modest growth in value terms, rising 1.83 per cent to $49.39 billion during April–December 2025, even as import volumes declined sharply. This suggests that higher global prices played a greater role in increasing gold import value, while physical demand remained relatively subdued due to price sensitivity among consumers.

Precious metals, particularly gold and silver, continue to see strong demand during festive and wedding seasons, when jewellery purchases typically rise across domestic markets. In addition to jewellery demand, silver consumption has also been supported by growing industrial usage in sectors such as electronics, solar energy, electrical equipment, and manufacturing, where silver serves as a key raw material.

Global precious metal prices have remained elevated over the past year amid inflation concerns, geopolitical uncertainties, and strong investment demand, contributing to higher import values. These price trends have amplified the overall import bill even in cases where physical import volumes have shown mixed movement.

India relies heavily on imports to meet its bullion requirements, as domestic production remains limited. As a result, fluctuations in gold and silver imports have a direct impact on the country’s external trade balance and current account position. Rising precious metal imports increase foreign exchange outflows and contribute to widening trade deficits, particularly during periods of strong domestic demand.

The divergence between gold and silver import trends also reflects evolving demand patterns, with silver seeing stronger growth supported by both investment demand and expanding industrial applications. As India continues to expand its manufacturing and renewable energy sectors, silver demand is expected to remain structurally supported.

The sustained increase in precious metal imports underscores their growing influence on India’s import dynamics and broader trade outlook, particularly at a time when global commodity prices and domestic consumption trends continue to shape external sector performance.