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The silver market in India has witnessed great growth in recent years. 


Moreover, the growth momentum of the silver market in India is expected to continue. In fact, at a demand of 1.242 billion ounces (boz), 2022 recorded the highest demand for the white metal.


With the growing demand and consumption, the import of silver in the Indian market reached 9,000 tons in 2022. Moreover, the export of silver jewellery saw a 16.02% hike in the financial year of 2023. Both of these findings highlight India’s strong and undeniable impact on silver in the global market. 


Read on to learn about the significant role that India’s silver market plays on the global field.

Importance of India in the Global Silver Jewellery Market

Over the last few years, the popularity of silver in the Indian market has grown exponentially due to numerous reasons. As one of the largest fabricators of silverware and ornaments, India exports the white metal to other countries, and does so on a major scale. 

Given this, any fluctuation in the consumption and supply of silver in India will affect the position of silver in countries that supply to and from India. As such, it would affect the standing of silver in the global market.  


Furthermore, the rising export demand due to India’s position as a silver fabricator has resulted in a change in companies and exporters. These companies and exporters in India's silver market are now aiming to expand their reach to the east, with countries like Australia and China. 


Additionally, Indian artisans and jewellery designers are growing globally in the silver market due to the rising popularity of silver ornaments. The cultural significance of silver in India also has a hand in this, as silver jewellery is becoming more common on special occasions. 


Moreover, the rising gold prices have made the yellow metal unattainable for many, and these individuals then rely on silver due to its affordability. This ultimately affects the supply and demand and, therefore, the position of the silver market. 


All of this ultimately affects the position of India’s silver market and its impact on the global market. Moreover, the soaring growth of silver in the Indian market magnifies its impact due to the interdependence of countries on India for silver products. 

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Silver Jewellery and Corresponding Prices

As the price of silver in the global market changes, you can see a similar effect in India's silver market. In addition, many global factors correspond to the change in the rate of silver in the Indian market. 

Common factors include: 

  • The strength of the dollar 

  • Inflation

  • Shortage of silver

  • High demand

  • Trade policies

  • Economic climate.


Another factor that affects the price you pay is the form in which you purchase the white metal. For example, jewellers add making charges for silver jewellery over and above the market price. Moreover, the making charges are subject to taxes, further increasing your cost. 


Additionally, jewellery made from silver in the Indian market has rhodium plating to increase its durability. This also gets added to the making charges of the silver jewellery. On the other hand, silver in coins, bars, etc., is not subject to these charges. 


As such, silver jewellery can cost more than coins and bullion. Given that silver in its entirety experienced a great appreciation in the last few years, more and more people prefer to invest in the silver market through these modes. 

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FAQS on the Importance of India in the Global Silver Market

What is the importance of silver in India?

India's silver market offers wide use of white metal in medicine, culinary and ornaments dating back to ancient times. In India, silver is used to make jewellery for its lustrous properties and in medicine for its healing properties. 


Furthermore, utensils are made of silver to boost immunity and nutritional value. As such, the use of silver in culinary practices is common, from plating and food decorating.

What is the size of the silver market in India?

As of 2022, the Indian market exported silver worth around ₹16,300 Crores. India’s silver market is expected to grow at a CAGR of 21.3% and reach $208.2 million by 2027.

Which country is the largest consumer of silver?

India is one of the largest importers and consumers of silver in the world as it is equally used for domestic and industrial use. Other largest silver market countries include China, Germany, the UK, Japan, and more.

Which are the top 3 silver producing states in India?

The top states for the production of silver in the Indian market are Rajasthan, Jharkhand, Karnataka, and Andhra Pradesh.

What is the best quality silver in the world?

The highest purity of silver is 99.9, which is very malleable and, therefore, not used in ornaments or jewellery. Generally, you will find coins and bars with the highest purity in the silver market.

What is the importance of silver in trade?

Silver has a cost advantage over other investment instruments, as it is highly lucrative and low-cost. This, coupled with its qualities to be a safe haven and resist inflation, amplify its significance.

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