India's only international bullion exchange, IIBX, has traded 570 tonnes of silver in the three months since August, after recording no trades in the previous year. The jump followed a government decision in May to require licences for some silver imports.
At a glance
- About 27% of India's 1,017 tonnes of silver imports this financial year came through IIBX.
- IIBX hopes to trade more than 2,000 tonnes of silver in the current financial year.
- Spot gold imports through the exchange were just 0.3 tonnes in the same period.
Background
The India International Bullion Exchange (IIBX) is India's first exchange through which eligible jewellers and other buyers can import bullion directly. Most of India's gold and silver imports have traditionally come through nominated banks. In May, the Directorate General of Foreign Trade (DGFT) moved some types of silver to its restricted list, so importers need a licence.
What happened
IIBX recorded trades of 570 tonnes of silver in the three months since August, after no silver trades over the previous year, Livemint reported. Spot gold imports through the exchange were just 0.3 tonnes.
India imported 1,017 tonnes of silver in the financial year through September, according to Department of Commerce data, and 283 tonnes, about 27%, came through IIBX.
Why importers moved
The jump followed the DGFT's May decision to require licences for some silver imports. Licences for about 400 tonnes had been approved by mid-August, said Anindya Banerjee, head of commodity and currency research at Kotak Neo.
Nominated banks with limited quotas often favour one large order over many small ones, an industry official said, so smaller importers have turned to the exchange. The government also wanted to stop importers using lower duty rates under the India-UAE trade agreement after it raised silver import duty to 15% in May.
What it means
IIBX was expected to build its business around gold, but a legal dispute over gold import quotas has disrupted that trade since early 2025. "We see silver becoming IIBX's second growth engine," said chief executive Ashok Gautam, who hopes to trade more than 2,000 tonnes of silver this financial year, subject to licences.
Silver prices in India have fallen 11.7% since August to Rs 1.92 lakh per kilogram.
Our read
Outlook: neutral. The rules change how silver enters India, not how much India wants to buy.
What to watch
- How many more silver import licences the DGFT issues.
- Whether IIBX reaches its 2,000-tonne silver target this financial year.
- A resolution of the legal dispute over gold import quotas on IIBX.
For information only, not investment advice.
Silver price in India
metalscost.com India reference price as of 2026-11-01.
Detailed analysis
Timeline
- 2026-10-29: Livemint reports 570 tonnes of silver traded on IIBX since August.
Government Policies
India raised silver import duty to 15% and restricted some silver imports in May.
What could lift prices
- Licence limits could restrict how much silver reaches Indian buyers.
- Indian importers bought 1,017 tonnes in the first half of the financial year.
What could weigh on prices
- Higher duties and licence rules aim to curb India's silver imports.
- Indian silver prices have fallen 11.7% since August.
Country impact
| Country | Impact | Reason |
|---|---|---|
| India | Medium | New licence rules are changing how silver enters the country. |
| United Arab Emirates | Low | Rules aim to stop importers using lower duty rates under the India-UAE trade deal. |
Industry impact
| Industry | Effect | Reason |
|---|---|---|
| Silver Jewellery & Silverware | Neutral | Smaller importers can now source silver through the exchange. |
Who gains, who loses
- India International Bullion Exchange: Silver has revived trading after a year with no silver deals.
- Importers using the UAE duty route: Licence rules limit the use of lower duty rates under the trade agreement.
Other ways this could play out
- If more licences are issued, IIBX silver trading could reach 2,000 tonnes this year.
- If licences slow, silver imports through the exchange could fall back.
Price risks
- Policy changes on duties or licences could quickly shift trade flows.
- The gold quota dispute still limits IIBX's gold business.
Technical view
Price is trading below both its 20-period and 50-period moving averages, a bearish alignment.
Computed from metalscost.com's own stored price history.
India