Due to a rise in industrial demand, imports of silver are anticipated to exceed 7000 tonnes this year, perhaps double from last year

Due to increasing demand from solar panel and electronics manufacturers, the country's silver imports may double in the calendar year 2024. Chirag Thakkar, CEO of Amrapali Group, a major importer, said on Friday, silver imports may reach 6,500 to 7,000 tonnes this year due to increase in industrial demand. A total of 3,625 tonnes of silver was imported during 2023.

Speaking on the sidelines of the India Gold Conference, Thakkar said, higher imports from India, the world's largest silver consumer, could support global prices. Globally, silver prices are close to their highest level in a decade. He said traditional demand for jewellery remains. After reducing customs duty from 15% to 6% in the 2024-25 budget, the price of silver has become quite affordable. On the other hand, according to Commerce Ministry data, silver imports have increased to 4,554 tonnes in the first half of 2024. Imports stood at 560 tonnes in the same period a year ago.

Thakkar said, there is a huge demand for silver among people for investment in the hope of higher returns than gold. Investment demand has been unprecedented during the first half of the current calendar year 2024. In the domestic market, the futures price of silver rose to a record high of Rs 96,493 per kg in May. Silver has given a return of around 14% to investors so far this year while investing in gold has given a profit of 13% during this period.