According to Sunil Kashyap, head of the Asian unit of Bank of Nova Scotia, India is expected to import much less silver this year than in 2011. Estimates expect silver import amounts to be between 800 and 1,300 tons less than last year. India is the largest global silver consumer, but the decline constitutes a drop in imports approaching thirty percent.
Although India’s import duty of five percent of valuation remains unchanged, price volatility is the factor most likely to contribute to the declining numbers. Kashyap confirms that Indian investors are likely to be averse to extreme volatility in silver pricing. The silver market continues to fluctuate, often dramatically, after price rises of more than one-hundred percent since 2009.
Recently, India made headlines as the much criticized silver excise tax was abolished. Gold bugs were not so lucky, though, as the yellow metal’s import tax doubled. Kashyap believes that imports of gold could decline as much as thirty-eight percent while many Indian jewelers have already closed their doors.
https://www.business-standard.com/commodities/news/silver-imports-to-fallto-27/471358/
