India's Silver Reliance: 90% Imported, Demand Surges in Solar & Investment

• India imports 80-90% of its silver, being the world's largest consumer, with domestic production at only 700-800 tons against a demand of 5000-7000 tons annually.
• Silver is widely used in India for jewelry, worship, investment, and increasingly in industrial applications like solar panels and electronics.
• Demand for silver is shifting from traditional jewelry to industrial uses (solar panels) and investment, which now account for 20-30% each.
• In 2025, silver prices exceeded 2 lakh rupees per kg due to a global shortage, yet demand, especially from solar and investment sectors, remained high.
• Future demand is expected to rise further with solar energy and electric vehicles, necessitating continued high imports despite government efforts to boost domestic production and recycling.

Why It Matters: India's massive silver demand heavily relies on imports, driven by industrial and investment growth.