Silver A Strategic Industrial Metal, India Must Shift From Importer To Processor: GTRI

(MENAFN- KNN India) New Delhi, Jan 7 (KNN) Silver is no longer just a precious metal but a critical industrial and energy-transition input, and India must urgently recalibrate its policy to move up the value chain, the Global Trade Research Initiative (GTRI) said.

Rising Import Dependence a Key Vulnerability

India imported about USD 6.4 billion worth of refined silver in 2024, accounting for 21.4 percent of global refined silver trade, making it the world's largest consumer of finished silver rather than a processor.

In FY25, exports were just USD 478.4 million against imports of USD 4.83 billion. The gap widened in 2025, with imports jumping to USD 2.7 billion in October and USD 1.1 billion in November.

Cumulative imports reached USD 8.5 billion in January–November and are estimated at USD 9.2 billion for the year, around 44 percent higher than in 2024.

Energy Transition and Strategic Risks

“India should recognise silver as a critical industrial and energy-transition metal, not merely a precious commodity, and integrate it into its minerals and clean-energy strategy,” Srivastava said.

He noted that silver supply chains are far less transparent than gold, creating a growing strategic vulnerability as global competition intensifies.

Import diversification has become more urgent after China tightened silver export controls, moving to a licence-based system from January 1, 2026.

Only approved firms can export silver, with government approval required for each shipment, raising global supply concerns and price volatility given China's key role in processing.

Global Trade in Silver Expanding Rapidly

Trade in silver ores and concentrates has expanded sharply from just USD 0.1 billion in 2000 to USD 6.27 billion in 2024.

Global trade in refined silver products, including bars, ingots, rods, wires, powders and bullion, has grown even faster, rising from USD 4.06 billion in 2000 to USD 31.42 billion in 2024.

GTRI said these trends underscore the need for India to shift from being a large consumer to a strategic processor of silver in order to support its manufacturing and clean-energy ambitions.

(KNN Bureau)

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