India's silver imports have hit a steep decline following the introduction of a new licensing regime that now governs all silver shipments into the country. The policy requires importers to secure a license before goods can clear customs, a procedure that has added red‑tape and delays across the supply chain. As a result, freight volumes fell by 30% in the last quarter, and traders have reported that the average lead time for a shipment has doubled.

The slowdown has pushed local silver premiums to a multi‑month high, with spot prices in New Delhi currently hovering around ₹3,200 per ounce – the highest level seen since early 2022. Analysts say the spike reflects the scarcity created by the licensing bottleneck, as well as a shift in demand for industrial versus investment silver.

Industry players are scrambling to adapt. Some import houses have begun to negotiate flexible delivery windows with freight forwarders, while others are exploring temporary exemptions under the new rules. The Ministry of Commerce has urged firms to streamline documentation and clarified that the licensing framework will be reviewed within six months to ease the backlog.