India International Bullion Exchange has traded 570 metric tonnes of silver since August, benefiting from DGFT licensing changes that reduced bank-led import dependency. The exchange is now targeting 2,000 tonnes for the year, though its growth remains linked to ongoing import license availability.
Since August, the India International Bullion Exchange (IIBX) has processed 570 metric tonnes of silver, marking a significant rise in trade volumes on the platform. This surge follows a directive issued by the Directorate General of Foreign Trade (DGFT) in May, which moved certain categories of silver to a restricted list. The new rules now require importers to obtain official licenses, a move that has effectively reduced the traditional monopoly held by nominated banks over silver imports.
Breaking the Bank-Led Import Model
Previously, nominated banks handled most silver imports, often prioritizing large-scale orders from a few high-volume clients to manage their limited quotas. This structure often left smaller jewellers and independent bullion importers struggling to source inventory during periods of high demand. These smaller players were often forced to pay higher premiums to intermediaries when supply was tight. The IIBX platform now provides a more transparent mechanism, allowing a wider range of eligible participants to source metal directly. This competitive pricing structure has encouraged many importers to switch to the exchange for their requirements.
Strategic Pivot to Silver
The IIBX was initially designed with a primary focus on gold trading. However, a legal dispute in early 2025 regarding customs duty quotas severely hampered gold volumes on the platform. With the gold segment facing these hurdles, the exchange successfully pivoted toward silver, which has now become its main growth engine. Following the recent licensing changes, management has set an ambitious goal of trading over 2,000 tonnes of silver within the current financial year.
Future Outlook and Risks
The long-term growth of the exchange is tied directly to the continued flow of DGFT licenses. Because the current volume surge is largely driven by regulatory policy, any future changes to these import requirements could impact trading activity. For observers and market participants, the next important update will be whether the government chooses to institutionalize this shift by mandating that a specific percentage of all licensed imports be executed through the exchange. Investors may also track the volume of trade in future months to see if this trend is sustainable or if it depends entirely on the current restricted list policy.