by The government on Tuesday banned the import of certain types of gold ornaments studded with gems and precious stones. This move may discourage imports of these products from Indonesia and Tanzania. However, the Directorate General of Foreign Trade (DGFT) said that under the duty free agreement between India and the United Arab Emirates (UAE), import of this studded gold jewelery will be allowed in the approved duty rate quota (TRQ) even without import authorization. ).
What is in the notification?
The import policy of gold ornaments studded with pearls, certain types of diamonds and other precious and semi-precious stones has been revised from ‘free to restricted’ with immediate effect, the DGFT said in a notification. A license/permission from the government is required to import prohibited items. An industry expert said imports of these items from Indonesia and Tanzania have increased. India has a free trade agreement with Indonesia.
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Import of gold has increased by 30 percent
According to government data, the country’s gold imports are expected to rise 30 percent to $45.54 billion in fiscal 2023-24 due to strong domestic demand. Gold imports in the financial year 2022-23 were worth 35 billion dollars. According to the data, the import of the precious metal fell by 53.56 percent to $1.53 billion in March this year. Switzerland is the largest source of gold imports, accounting for about 40 percent. After this, United Arab Emirates (UAE) accounts for 16 percent and South Africa accounts for about 10 percent of imports. The share of gold in the total import of the country has been more than five percent. At present, 15 percent import duty is levied on gold. Let us tell you that after China, India is the second largest consumer of gold in the world. These imports mainly cater to the demand of the jewelery industry.
