IndiaÔÇÖs Silver Imports Poised to Accelerate
A goldsmith inserts a stone inside a silver crown at a jewellery making workshop in Mumbai, India, August 14, 2025. REUTERS/Francis Mascarenhas/
IndiaÔÇÖs silver imports are expected to regain momentum after a subdued start to the year, with both investment and industrial demand tightening domestic supply. Officials from across the bullion trade point to depleted inventories, rising local futures, and strong exchange-traded fund inflows as drivers that could sustain buying into year-end.
According to Inside Commodities off the Reuters terminal, the analysis underscores how India, the worldÔÇÖs largest silver consumer, may again play an outsized role in global price formation. After surging in 2024, imports fell sharply in the first eight months of 2025. Yet recent shifts in investment appetite are changing the outlook.
ÔÇ£With prices going up, investment demand has shot up, too ÔÇö nearly twice as much as before,ÔÇØ -Chirag Thakkar, CEO of Amrapali Group Gujarat.
Imports and Stock Depletion
India imported 7,669 tons of silver in 2024, more than double the previous yearÔÇÖs tally. By contrast, the first eight months of 2025 brought only 2,580 tons, less than half the level of a year earlier. That slowdown had initially raised expectations of a steep decline in annual demand. But strong consumption in recent months has absorbed leftover supply, leaving banks and dealers stepping up purchases.
No Scrap For Sale at $42
Local silver futures hit a record 129,878 rupees per kilogram this week, up 49 percent year-to-date. Gold has rallied 44 percent over the same period, but silverÔÇÖs relative outperformance reflects enthusiasm among Indian buyers. Despite the price surge, silver is still trading at a premium above official domestic rates, which factor in both import duty and sales tax.
ÔÇ£Usually, when prices shoot up, a ton of scrap hits the market because investors cash out. But this time theyÔÇÖre so bullish on the outlook that hardly any scrap is showing up,ÔÇØ observed one Mumbai-based dealer.
ETFs and Investment Demand
Exchange-traded funds provide further evidence of bullish positioning. Inflows into Indian silver ETFs totaled 17.59 billion rupees in July and 19.04 billion rupees in August, far above the prior fiscal yearÔÇÖs monthly average of 6.7 billion rupees, according to the Association of Mutual Funds in India.
ETF inflows ÔÇ£well above the last fiscal yearÔÇÖs monthly averageÔÇØ signal the persistence of retail and institutional appetite for silver.
Global Trade Links
India sources silver primarily from the United Arab Emirates, Britain, and China. With restocking now under way, shipments are expected to end the year between 5,500 and 6,000 tons. That trajectory, while lower than 2024ÔÇÖs record, suggests IndiaÔÇÖs demand will remain a key factor shaping global silver prices at levels near their highest in 14 years.
Indian Demand Summary Table
