Silver imports could jump 66% this fiscal

India’s silver imports could rise by around 66% in 2024 following a 260% year-on-year surge in shipments in February on the back of a more muted 2023. 

This calendar year got off to a strong start for silver imports as, following January’s silver import total of 637 metric tonnes, February’s total reached 2,295 metric tonnes, ET Bureau reported, citing an anonymous government source. In February, 939 metric tonnes of silver were imported from the United Arab Emirates, which has become a popular destination for India’s jewellery trade following the recent trade agreement between the UAE and India which resulted in significant reductions to customs duties for industries including jewellery. 
 
“Indian imports are cyclical in nature,” jewellery business Amrapali Group Gujarat’s CEO Chirag Thakkar told Reuters. “In one year, imports may be very high, and then the following year they may fall. Since imports fell in 2023 after record buying in 2022, we can expect imports to pick up in 2024.”

However, the high silver imports in February meant that jewellers had high stock levels and Indian prices for the precious metal fell. This caused banks to drastically reduce silver imports in March, the Economic Times reported. Despite this, silver imports could touch 6,000 metric tonnes this year due to demand from both the jewellery and the solar industries.