The Indian government has announced that it will import up to 160 tonnes of gold from the UAE at special prices from 2024-25 in line with the India-UAE Free Trade Agreement. The announcement was made by officials on Tuesday.
The Comprehensive Economic Partnership Agreement, which came into force on May 1, 2022, allows India to import up to 200 tonnes of gold per year from the UAE with a 1% tariff concession under the tariff quota system.
India had imposed a limit of 140 tonnes in the previous financial year, which it has now raised to 160 tonnes for 2024-25.A report by think tank GTRI said India’s gold imports from the UAE will surge by 147.6 per cent, rising from $3 billion in 2023 to $7.6 billion in 2024.The report called for a review of the agreement.
India’s gold imports, which impact the country’s current account deficit, are expected to fall 4.23% to $12.64 billion between April 2024 and July 2025 due to global economic uncertainty, according to government data.
The government has cut customs duty on gold and silver from 15% to 6% in the budget proposal. India’s gold imports are expected to grow 30% to $45.54 billion in 2023-24.
Switzerland is the largest gold importer, with a share of around 40%, followed by the UAE (over 16%) and South Africa (around 10%).
Precious metals account for more than 5% of the country’s total imports.
(With inputs from PTI)