India will import 160 tonnes of gold from the United Arab Emirates (UAE) at a concessional rate in the current financial year 2024-25. The government has also notified the import in this regard. India will import this under the free trade agreement between the two countries. According to PTI news, an official said on Tuesday that the government has notified the import of up to 160 tonnes of gold by manufacturers and traders at a concessional rate from the UAE for 2024-25 under the India-UAE Free Trade Agreement.
The agreement came into force on May 1, 2022
According to the news, the agreement, officially named as the 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 percent tariff concession under the Tariff Rate Quota (TRQ). India had notified 140 tonnes in the previous fiscal and 160 tonnes for 2024-25, the official said.
India’s gold imports from UAE in FY23
Think tank GTRI said in its report in June that India’s gold imports from the UAE grew 147.6 per cent from USD 3 billion in FY23 to USD 7.6 billion in FY24. It has sought a review of the agreement. India’s gold imports, which have a bearing on the country’s current account deficit (CAD), fell 4.23 per cent to USD 12.64 billion during April-July 2024-25 due to global economic uncertainties, according to government data.
Government reduced customs duty in Budget
India’s gold imports, which have an impact on the country’s current account deficit (CAD), fell by 4.23 per cent to USD 12.64 billion during April-July 2024-25 due to global economic uncertainties. The government has reduced customs duty on gold and silver from 15 per cent to 6 per cent in the Budget. India’s gold imports grew 30 per cent to USD 45.54 billion in 2023-24. Switzerland is the largest source of gold imports, with a share of nearly 40 per cent, followed by the UAE (over 16 per cent) and South Africa (around 10 per cent). The precious metal accounts for over 5 per cent of the country’s total imports.