August 28, 2024 2:36:18 pm
(MENAFN-KNN India) New Delhi, August 28 (KNN) The Indian government has announced an increase in gold import quota from the United Arab Emirates (UAE) for the financial year 2024-25.
An official statement on Tuesday said India will allow imports of up to 160 tonnes of gold at preferential tax rates, up from 140 tonnes last year.
The decision is in line with the India-UAE Comprehensive Economic Partnership Agreement (CEPA), which came into force on May 1, 2022.
The agreement will allow India to import up to 200 tonnes of gold per year from the UAE with a 1% customs exemption under the tariff quota system.
Recent data shows a significant increase in gold imports from the UAE. According to a Global Trade Research Initiative (GTRI) report, India’s gold imports from the UAE are set to grow 147.6% from $3 billion in FY23 to $7.6 billion in FY24. This surge has prompted the GTRI to suggest a review of the agreement.
Despite the rise in imports from the UAE, gold imports into India have declined slightly overall. According to government data, gold imports, which impact the country’s current account deficit, fell 4.23% to USD 12.64 billion between April 2024 and July 2025. The decline was due to uncertainty in the global economy.
It is noteworthy that in the 2024-25 budget, the Indian government has reduced customs duty on gold and silver from 15% to 6%.
The policy change comes as India’s total gold imports are expected to grow by 30% to USD 45.54 billion in 2023-24.
Switzerland remains India’s largest gold importer, accounting for around 40% of total imports, followed by the UAE with a market share of over 16% and South Africa with around 10%.
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