India's Silver Secret: Why 90% of Its Massive Demand Comes From Abroad

• India is a top global silver consumer, driven by cultural significance, investment, and industrial uses like solar power and electronics.
• Despite annual demand of 5,000-7,000 tonnes, domestic production is only 700-800 tonnes, mainly as a by-product from Hindustan Zinc.
• India imports 80-90% of its silver, with Mexico being the largest supplier, followed by China, Argentina, and Chile.
• Consumption patterns have shifted; industrial and investment uses now account for 40-60% of demand, alongside traditional purposes.
• Silver prices surged to Rs 2 lakh/kg in 2025 due to global shortage, but strong industrial and investment demand sustained overall consumption.

Why It Matters: India's huge silver demand heavily relies on imports, a trend expected to continue despite price surges.