In the present scenario, upside in silver is expected to remain capped barring clear and material developments aiding constructive US-Iran negotiations
The notification from the DGFT comes within a week of the government raising the duty on the import of the precious metal to 15 per cent from 6 per cent
Under the revised policy, imports of silver bars containing 99.9 per cent or more silver by weight, as well as other silver bars under specific HS codes, will now require authorisation
Today's BS Opinion wrap looks at gold imports and forex pressures, judicial infrastructure gaps, financing the Viksit Bharat dream, coal gasification, and Japan's wartime history
Value of gold imports rose in FY26 even as volumes fell. Apurva Sheth of Samco explains why higher gold duty may not curb demand and why fuel price hikes could better protect India's fiscal position
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The government imposed a 10 per cent basic customs duty along with a 5 per cent Agriculture Infrastructure and Development Cess (AIDC), aiming to curb imports of the previous metals
The resumption is expected to boost the country's gold imports, widen the trade deficit and put more pressure on the rupee, which is among Asia's worst-performing currencies this year
India is the world's second-largest consumer of gold and the largest consumer of silver
Shipments have been stuck at customs since the start of the financial year on April 1, ensnared by administrative bottlenecks and a lack of clarity over taxes
The country's gold imports rose 24 per cent to hit an all-time high of USD 71.98 billion in 2025-26 on account of high prices of the precious metal, according to Commerce Ministry data. Gold imports stood at USD 58 billion in 2024-25. It was USD 45.54 billion in 2023-24 and USD 35 billion in 2022-23. In volume terms, imports dipped 4.76 per cent to 721.03 tonnes. It was 757.09 tonnes in 2024-25. Similarly, silver imports jumped about 150 per cent to USD 12 billion in the last fiscal due to higher prices. In volume terms, it rose by 42 per cent to 7,334.96 tonnes in 2025-26. The rise in imports of these precious metals has pushed the country's trade deficit (difference between imports and exports) to USD 333.2 billion during 2025-26, the data showed. Prices of the yellow metal are hovering around Rs 1,56,000 per 10 grams (inclusive of all taxes) in the national capital. Silver was priced at around Rs 2.53 lakh per Kg. Higher "gold import is driven by the rise in prices from USD ..
On April 14, silver prices surged to $80.85 -- the highest since March 13 -- on Iran peace hopes before erasing gains as the US Dollar stabilised
Without fresh imports, India could face supply shortages, as the world's second-largest gold consumer and biggest silver buyer relies on overseas purchases to meet nearly all its demand
Silver moving through the $90/oz mark, believes Nigel Green, chief executive officer of deVere Group, a global consulting firm that has $14 billion in AUM, marks a decisive shift in market psycology
Silver is not just a precious metal but a key industrial and energy transition input, and India should focus on processing it by securing long-term overseas mining supplies, boosting domestic refining and recycling, reducing reliance on imported finished silver, and diversifying import sources, GTRI said. It said China is the world's dominant processor of silver. Beijing is importing around USD 5.6 billion of silver ores and concentrates out of a global total of USD 6.3 billion. It refines this metal domestically and exports higher-value silver embedded in electronics, medical devices, and solar panels. India, by contrast, imported about USD 6.4 billion of refined silver in 2024, 21.4 per cent of global trade, making it the world's largest consumer of finished silver rather than a processor. "India must learn to process silver from the ore stage for domestic value addition," Global Trade Research Initiative (GTRI) Founder Ajay Srivastava said. In FY25, India exported just USD 478.
In the short-term, however, further heightened volatility can not be ruled out, especially due to geopolitical factors and US CPI data
Higher imports by India, the world's second-biggest consumer of the precious metal, are set to support gold prices that hit records this week, even as demand languishes in top buyer China
Looking ahead to 2025, with demand forecast at 1,148.3Moz against supply of 1,030.6Moz, the silver market, Nomura said, faces its fifth consecutive year of deficit at 117.6Moz
Silver outlook continues to remain constructive on rate cut expectations, huge ETF inflows, elevated geopolitical and economic risks. Strength in gold bodes well for silver.
Silver trading strategy: Healthy risk appetite on US-China trade truce extension and surging risk assets would continue to support the metal into the dips.