Global Trade Research Initiative
India must focus on silver processing, diversify overseas buys, says think tank
This story was originally published at 22:06 IST on 7 January 2026
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NEW DELHI – India should focus on domestic silver processing capacity and diversify its overseas purchases rather than rely heavily on imported refined silver, the Global Trade Research Initiative said. "China processes, India consumes...India must learn to process silver from the ore stage for domestic value addition," Ajay Srivastava, founder of the think tank, said in a release.
India has become the world's largest importer of silver bars and rods, while China dominates the refining of silver ores and concentrates. This imbalance leaves Indian manufacturers exposed to supply chain disruptions and volatile prices. "Unlike gold, silver supply chains remain far less transparent—a vulnerability that is becoming strategic as competition intensifies," the release said.
Silver prices in India nearly tripled in rupee terms, climbing to INR 243,000 per kg in early January 2026 from INR 80,000-85,000 per kg in January 2025. Despite the surge in prices, India's silver imports rose 44% on year to $9.2 billion in 2025, signalling strong consumption, the release said.
The think tank pointed out that refined silver has transformed over time from a precious metal into an industrial metal, driven by strong demand for electronics, solar power, electric vehicles, defence, and medical technologies. Solar power alone consumes about 15% of global silver supply, making the metal critical for the energy transition.
Given silver's strategic importance, India must encourage investments in domestic refining and recycling infrastructure, and diversify import sources beyond a few trading hubs, Srivastava said. End
US$1 = INR 89.88
Reported by Afra Abubacker
Edited by Deepshikha Bhardwaj
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