Shiva, up against second seed and local favourite Elnur Abduraimov, lost in a split verdict after a head-butt from his opponent resulted in a cut.
It was in the final few seconds of the opening round when Shiva sustained the cut, forcing a stoppage by the referee.
The disappointment of missing out on the gold aside, the silver is his third successive medal at the continental showpiece after a gold in 2013 and a bronze in the 2015 edition.
The Assam-pugilist, a World Championships bronze- medallist in bantamweight (56kg), shifted to lightweight in December last year. He went on to win a gold medal at the National Championships before a couple of early losses in tournaments in Bulgaria and Thailand.
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"Obviously when you are competing against an established name, a few things play on your mind but then once you enter the ring, you have to block it out," he said.
There was also some disappointment for India with Gaurav Bidhuri (56kg) losing his box-off for a World Championship slot to Japan's Ryomei Tanaka in a split verdict.
The World Championships are due to be held in August- September and the top six boxers from each weight category will qualify for the mega-event in Germany.
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