India’s silver imports are projected to nearly double this year, driven by increased demand from solar panel and electronics manufacturers, as well as a shift in investor preference towards silver over gold. Importers anticipate that purchases could rise from 3,625 metric tons last year to between 6,500 and 7,000 tons in 2024.
In the first half of 2024, India imported 4,554 tons of silver, a significant increase from just 560 tons during the same period last year. Chirag Thakkar, CEO of Amrapali Group Gujarat, highlighted that the recent reduction in import duties—from 15% to 6%—has made silver more affordable, stimulating both traditional jewelry demand and investment interest.
Local silver futures reached a record high of 96,493 rupees ($1,151) per kilogram in May, reflecting a nearly 14% increase in 2024, slightly outpacing the 13% rise in gold prices. The shift towards silver investment has been described as “phenomenal,” with many buyers expecting better returns than gold.
The primary sources of India’s silver imports include the United Arab Emirates, Britain, and China. With depleted inventories from 2023, industrial buyers are stockpiling silver to hedge against rising prices.