India’s silver imports fell to their lowest level in more than three years in May after the government tightened restrictions on imports of the precious metal and raised tariffs, according to official data, Reuters reported.Data compiled by the Ministry of Commerce and Industry showed imports fell 87% year-on-year to $75.57 million in May from $566.22 million a year earlier.In volume terms, silver imports fell 94% from a year ago to 33 metric tons, the lowest level since February 2023.The sharp decline followed a series of measures aimed at curbing imports of the precious metal. In mid-May, India banned the import of silver in almost all forms with immediate effect. Earlier this month, the government further tightened the rules by bringing silver grains and powder into the restricted category and requiring prior import authorization.India, the largest consumer of silver in the world, meets more than 80% of its demand through imports.According to market participants, lower imports could weigh on global silver prices, while helping narrow India’s trade deficit and putting pressure on the rupee.The government has increased import duty on gold and silver to 15% from 6% in efforts to curb imports of the precious metal and ease pressure on foreign exchange reserves amid high crude oil prices.“There is demand, but due to restrictions, imports have become difficult and local premiums have started to rise,” a Mumbai-based dealer at a private bullion importer bank told Reuters.India spent a record $12 billion on silver imports during the 2025-26 fiscal year ending in March, compared to $4.8 billion in the previous year.Silver in India is used in jewellery, coins, bars and for many industrial applications including solar energy and electronics.Over the past year, demand has been driven primarily by investment purchases rather than consumption of traditional jewelery and silverware, with inflows into silver exchange-traded funds (ETFs) reaching record highs.India mainly imports silver from the United Arab Emirates, United Kingdom and China.