After a six‑month pause, silver shipments into India have started to climb again. The uptick follows a new licensing regime introduced in May to safeguard foreign‑exchange reserves. Traders and banks have now obtained the necessary permits to bring more silver into the country.
With the new permits in hand, traders moved about 89.81 tonnes of silver into India in August. The cargo arrived through the India International Bullion Exchange, located in Gujarat’s International Finance Tec‑City. Bloomberg’s data shows this is the first significant import since the pause began.
India remains one of the world’s largest consumers of silver and relies almost entirely on imports. Higher domestic prices give traders an incentive to sell silver to Indian buyers. The increased supply has narrowed the premium between local and global prices.
Harshal Barot, principal consultant at Metals Focus Ltd, said that around 400 tonnes of licenses have been approved so far. This approval has helped improve silver availability compared to July. The 30‑day average premium remains about $4 per ounce.
The new licensing rules require each shipment to carry a certificate proving its country of origin. Normally, shipping documents mention the metal’s origin, but a formal government‑issued certificate is a new requirement. This is not standard practice unless the import falls under a free‑trade agreement.
The extra paperwork is causing delays. Many traders are still unable to clear customs on time because they cannot obtain the required documents quickly. As a result, some traders are looking for suppliers from countries that can provide the necessary paperwork faster.
Jewelers anticipate a rise in demand as the festival and wedding season approaches. Renisha Chainani, chief research officer at Augmont Enterprise Ltd, said that the market is currently operating on existing inventory and trickle‑through supply rather than a genuine increase in new shipments.
Even after approvals, shipping, customs clearance and refining logistics can add several weeks to the process. This means that the silver market in India will continue to rely on current stocks while new flows gradually catch up.