The government has announced the import of up to 160 tonnes of gold from the UAE at a concessional rate for 2024–25, in accordance with the India-UAE Free Trade Agreement. This announcement was made by an official on Tuesday.
The Comprehensive Economic Partnership Agreement, which took effect on May 1, 2022, allows India to import up to 200 tonnes of gold annually from the UAE with a 1% tariff concession under the Tariff Rate Quota.
For the previous fiscal year, India set a limit of 140 tonnes, and has now increased it to 160 tonnes for 2024–25. According to a report by think tank GTRI, India's gold imports from the UAE surged 147.6%, rising from $3 billion in the financial year ended 2023 to $7.6 billion in fiscal 2024. The report has called for a review of the agreement.
India's gold imports, which have a bearing on the country's current account deficit, dipped by 4.23% to $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% from 15% in the Budget. In 2023–24, India's gold imports surged by 30% to $45.54 billion.
Switzerland is the largest source of gold imports, with about 40% share, followed by the UAE (over 16%) and South Africa (about 10%).
The precious metal accounts for over 5% of the country's total imports.
(With Inputs From PTI)
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