India Raises Gold Import Quota From UAE To 160 Tonnes For FY 2024-25 Amid CEPA Agreement
Date
8/28/2024 2:36:18 PM
(MENAFN- KNN India)
New Delhi, Aug 28 (KNN) The Indian government has announced an increase in its Gold import quota from the United Arab Emirates (UAE) for the fiscal year 2024-25.
An official statement on Tuesday revealed that India will allow the import of up to 160 tonnes of gold at a concessional rate, up from 140 tonnes in the previous year.
This decision aligns with the India-UAE Comprehensive Economic Partnership Agreement (CEPA), which came into effect on May 1, 2022.
The agreement permits India to import up to 200 tonnes of gold annually from the UAE with a 1 per cent tariff concession under the Tariff Rate Quota.
Recent data shows a significant rise in gold imports from the UAE. According to a report by the Global Trade Research Initiative (GTRI), India's gold imports from the UAE increased by 147.6 per cent, from USD 3 billion in fiscal year 2023 to USD 7.6 billion in fiscal 2024. In light of this surge, the GTRI has suggested a review of the agreement.
Despite the increase in imports from the UAE, overall gold imports to India have seen a slight decline. Government data indicates that gold imports, which impact the country's current account deficit, decreased by 4.23 per cent to USD 12.64 billion during April-July 2024-25. This reduction is attributed to global economic uncertainties.
It's worth noting that in the 2024-25 budget, the Indian government reduced the customs duty on gold and silver from 15 per cent to 6 per cent.
This policy change follows a 30 per cent increase in India's total gold imports to USD 45.54 billion in 2023-24.
Switzerland remains the largest source of gold imports for India, accounting for approximately 40 per cent of the total. The UAE follows with over 16 per cent market share, while South Africa contributes about 10 per cent.
(KNN Bureau)
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