How silver prices work in India
Silver prices in India are determined by the international spot price (quoted in USD per troy ounce on COMEX and London markets), converted to INR using the live exchange rate, and then adjusted for import duty, GST, and retail premiums.
The India Bullion and Jewellers Association (IBJA) publishes daily domestic benchmark rates that most retailers follow. Silver is more volatile than gold and can move 2-3% in a single day during high-demand periods.
Silver demand in India is driven by industrial use (electronics, solar panels), jewellery, utensils, and investment (coins, bars). Festival seasons like Dhanteras and Dussehra see significant retail demand spikes.