India Silver Import Market -- HS 7106 Trade Data & Price Trend (Q2 2025)

India Silver Import (HS 7106) Key Takeaways

India's silver imports under HS Code 7106 surged to $1.44 billion in Q2 2025, spiking in May after a duty cut to 6% before sharply retreating, reflecting volatile demand. Semi-manufactured silver dominated, with high-value sub-codes like 71069221 commanding $6,525/kg, while unwrought forms traded at commodity-grade prices. Supplier concentration is extreme—just three firms handle 77% of import value, creating supply chain risks. China Hongkong and Mainland China lead origins, supplying 59% of value but with erratic quantity reporting. This analysis is based on cleanly processed Q2 2025 customs data from the yTrade database.

India Silver Import (HS 7106) Background

What is HS Code 7106?

HS Code 7106 covers silver, including silver plated with gold or platinum, in unwrought or semi-manufactured forms, or in powder form. This category is critical for industries such as jewelry manufacturing, electronics (due to silver’s conductive properties), and solar panel production. Global demand remains stable, driven by industrial applications and investment demand for precious metals.

Current Context and Strategic Position

India’s silver import policy under HS Code 7106 saw significant changes in Q2 2025, with customs duty reduced from 15% to 6% to lower import costs [Economic Times]. However, restrictions on silver jewelry imports remain until March 2026, requiring licenses to protect domestic manufacturers [IndiaFilings]. India’s strategic position as a major silver importer underscores the need for vigilance in tracking HS Code 7106 trade data, especially with tighter controls on unauthorized imports and new tariff items introduced in May 2025 [Union Budget]. Monitoring these shifts is essential for stakeholders in jewelry, electronics, and renewable energy sectors.

India Silver Import (HS 7106) Price Trend

Key Observations

In Q2 2025, the India Silver Import trend under hs code 7106 displayed high volatility, with monthly values reaching $348.32 million in April, peaking at $757.80 million in May, and dropping to $337.25 million in June. This resulted in a quarterly total of approximately $1.44 billion, reflecting a turbulent period for silver inflows.

Price and Volume Dynamics

The hs code 7106 value trend surged dramatically in May, more than doubling from April's figure, but then plummeted in June to near April levels. This volatility follows a broader decline from the elevated $1.27 billion import value in January 2025, indicating a market responsive to policy shifts rather than steady seasonal or industrial cycles typical of silver, which often sees fluctuations around regulatory changes.

External Context and Outlook

This instability is directly tied to India's customs duty reduction on silver imports from 15% to 6%, effective May 1, 2025, as reported by [Economic Times]. The May spike likely represents a rush by importers to capitalize on lower costs, while the June drop suggests a post-adjustment normalization. With ongoing restrictions on jewelry imports (IndiaFilings), the outlook remains cautious, but the duty cut should continue to influence import volumes positively in the medium term.

India Silver Import (HS 7106) HS Code Breakdown

Product Specialization and Concentration

In Q2 2025, India's import of HS Code 7106 is dominated by semi-manufactured silver under sub-code 71069221, which accounts for over two-thirds of the total import value. According to yTrade data, this product has a high unit price of 6525 US dollars per kilogram, indicating a focus on higher-value processed forms. An extreme price anomaly is present in sub-code 71069229, with a unit price of 19808 US dollars per kilogram, which is isolated from the main analysis due to its outlier nature.

Value-Chain Structure and Grade Analysis

The remaining imports are grouped into unwrought silver, other semi-manufactured forms, and silver powder. Unwrought silver, like sub-code 71069110, has lower unit prices around 2251 US dollars per kilogram, suggesting a bulk commodity trade. Semi-manufactured items, such as 71069220, show moderate unit prices near 2049 US dollars per kilogram, indicating some value addition. Silver powder under 71061000 has the lowest unit price at 258 US dollars per kilogram, pointing to a basic, industrial-grade product. This structure reflects a mix of fungible bulk materials and slightly differentiated goods.

Strategic Implication and Pricing Power

For market players, the high concentration in semi-manufactured silver suggests stronger pricing power for processed goods, especially with India's reduced import duty to 6 percent as noted in [Seair]. This duty cut may boost volumes, but restrictions on certain silver products could limit opportunities. Analyzing HS Code 7106 trade data highlights a strategic focus on value-added imports to leverage cost advantages and navigate regulatory changes.

Check Detailed HS Code 7106 Breakdown

India Silver Import (HS 7106) Origin Countries

Geographic Concentration and Dominant Role

China Hongkong is the dominant origin for India's silver imports in Q2 2025, supplying 34.7% of the total import value. This share greatly exceeds its 3.61% frequency share, indicating large, high-value shipments. However, its quantity share of 71.56% lacks corresponding weight data, suggesting possible reporting anomalies for this partner. Mainland China follows as the second largest source by value (24.12%) but shows a different pattern with very high frequency (14.02%) against minimal quantity share (0.08%), pointing to frequent shipments of processed or high-value silver products rather than raw bulk material.

Origin Countries Clusters and Underlying Causes

The Top 10 origins form three clear clusters. The High-Value Cluster includes China Hongkong and Mainland China, where value shares dominate quantity, indicating premium product flows. The Bulk Raw Material Cluster contains the United Kingdom, United States, Switzerland, Australia, and Kazakhstan, all showing substantial quantity shares (2.81-8.80%) that exceed their value contributions, consistent with raw silver bullion imports. The Niche Supplier Cluster comprises Finland, Uzbekistan, and Germany, each with 3-3.7% value share but minimal quantity, suggesting specialized silver products or semi-manufactured goods.

Forward Strategy and Supply Chain Implications

India's silver import strategy shows heavy dependence on China Hongkong for value and bulk suppliers for volume, creating supply chain vulnerability. The recent reduction in silver import duty from 15% to 6% effective May 2025 [Economic Times] makes diversification more feasible. However, restrictions on silver jewelry imports until March 2026 requiring government licenses [IndiaFilings] complicate sourcing strategies. Companies should develop alternative suppliers in the bulk cluster while maintaining relationships with niche European suppliers for specialized products, especially given the creation of three new tariff items under HS 7106 effective May 2025 [Union Budget].

Table: India Silver (HS 7106) Top Origin Countries (Source: yTrade)

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India Silver (HS 7106) Suppliers Analysis

Supplier Concentration and Dominance

In Q2 2025, the India silver import suppliers market shows strong concentration. According to yTrade data, a small group of suppliers handling high-value and high-frequency shipments dominates, accounting for 77.73% of the total import value. This cluster also represents 73.19% of shipment frequency, indicating that typical trade involves regular, large-scale silver imports crucial for meeting industrial or investment demand.

Strategic Supplier Clusters and Trade Role

The profile of HS code 7106 suppliers points to an intermediated market, with dominant players like THE INDIAN CORPORATION and LT METAL CO LTD likely acting as key traders or agents. Other clusters play smaller roles: high-value low-frequency suppliers may handle bulk or specialized shipments, while low-value groups contribute minimally to value but add diversity in frequency or quantity. This structure suggests a market reliant on established intermediaries for silver sourcing.

Sourcing Strategy and Vulnerability

For importers in India, the heavy reliance on a few high-value suppliers increases vulnerability to supply disruptions or price shocks. Strategic focus should include diversifying sources to reduce concentration risk. Recent policy changes, such as reduced customs duty to 6% [Economic Times], lower costs but require adherence to agency-based import rules (Economic Times), emphasizing the need for compliant and flexible sourcing models.

Table: India Silver (HS 7106) Top Suppliers List (Source: yTrade)

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Action Plan for Silver Market Operation and Expansion

Strategic Supply Chain Overview

India's Silver Import market under hs code 7106 trade data reveals key price drivers. Quality and grade dominate pricing. Semi-manufactured silver commands higher prices due to value addition. Unwrought silver acts as a bulk commodity with lower costs. Geopolitical factors like India's reduced import duty to 6% influence costs but come with restrictions on certain products. The Silver supply chain faces high concentration risks. A few suppliers and origins, like China Hongkong, control most value and volume. This creates vulnerability to disruptions. India's role is as a processing hub, focusing on value-added imports to leverage cost advantages.

Action Plan: Data-Driven Steps for Silver Market Execution and Expansion

• Diversify supplier sources using hs code 7106 trade data to identify high-frequency bulk suppliers in clusters like the UK or US. This reduces reliance on dominant partners and mitigates supply chain risks.
• Analyze sub-code unit price trends to prioritize imports of semi-manufactured silver over unwrought forms. This maximizes cost efficiency and taps into higher-margin opportunities.
• Monitor regulatory changes and adjust sourcing strategies in real-time based on duty reductions and import restrictions. This ensures compliance and capitalizes on lower costs under new policies.
• Use geographic origin data to balance imports between bulk raw materials and niche specialized products. This optimizes the Silver supply chain for both volume and value, enhancing overall resilience.

Take Action Now —— Explore India Silver Import Data

Frequently Asked Questions

Q1. What is driving the recent changes in India Silver Import 2025 Q2?

The volatility in India's silver imports is primarily driven by the customs duty reduction from 15% to 6% in May 2025, causing a surge in May imports ($757.80M) followed by a sharp drop in June ($337.25M). The market remains responsive to policy shifts rather than steady demand cycles.

Q2. Who are the main origin countries of India Silver (HS Code 7106) 2025 Q2?

China Hongkong dominates with 34.7% of import value, followed by Mainland China (24.12%). The UK, US, and Switzerland form a bulk raw material cluster, while Finland and Uzbekistan supply niche, high-value products.

Q3. Why does the unit price differ across origin countries of India Silver Import?

Price differences stem from product specialization: semi-manufactured silver (e.g., sub-code 71069221 at $6,525/kg) commands premium prices, while unwrought silver (e.g., 71069110 at $2,251/kg) and silver powder ($258/kg) trade as bulk commodities.

Q4. What should importers in India focus on when buying Silver?

Importers should diversify suppliers to mitigate reliance on China Hongkong (34.7% value share) and leverage the duty cut for cost savings. Compliance with agency-based import rules and niche European suppliers for specialized products is critical.

Q5. What does this India Silver import pattern mean for overseas suppliers?

Suppliers in China Hongkong and Mainland China benefit from high-value dominance, while bulk raw material exporters (UK, US) face stable demand. Niche European suppliers can capitalize on specialized product gaps in India’s market.

Q6. How is Silver typically used in this trade flow?

India’s imports focus on semi-manufactured silver (e.g., 71069221) for value-added processing, unwrought silver for bulk industrial use, and silver powder for basic applications, reflecting a mix of investment and industrial demand.

Detailed Monthly Report

India HS7106 Import Snapshot 2025 APR

India HS7106 Import Snapshot 2025 MAY

India HS7106 Import Snapshot 2025 JUN