160 tons of Gold
Import from UAE at Concessional Rate under Trade Pact
·
India agreed to import
up to 200 metric tonnes of gold annually from the UAE with a one per cent
tariff concession under Tariff Rate Quota (TRQ).
·
India's gold imports
from UAE rose 147.6 per cent from USD 3 billion in FY23 to USD 7.6 billion in
FY24.
[ABS
News Service/29.08.2024]
The
government has notified the import of up to 160 tonnes of gold by manufacturers
and traders from the UAE at a concessional rate for 2024-25 under the India-UAE
free trade agreement, an official said on Tuesday (27.08.2024). The agreement,
officially dubbed as Comprehensive Economic Partnership Agreement (CEPA) came
into force on May 1, 2022.
Under
the agreement, India agreed to import up to 200 metric tonnes of gold annually
from the UAE with a one per cent tariff concession under Tariff Rate Quota
(TRQ).
Last
fiscal, India notified 140 tonnes, and 160 tonnes for 2024-25, the official added.
India's
gold imports, which have a bearing on the country's current account deficit
(CAD), dipped by 4.23 per cent to USD 12.64 billion during April-July 2024-25
due to global economic uncertainties, according to government data.
The
government has slashed the customs duty on gold and silver to 6 per cent from
15 per cent in the Budget which has cut smuggling flow into India.
In
2023-24, India's gold imports surged by 30 per cent to USD 45.54 billion.
Switzerland
is the largest source of gold imports, with about 40 per cent share, followed
by the UAE (over 16 per cent) and South Africa (about 10 per cent).
The
precious metal accounts for over 5 per cent of the country's total imports.