In a sudden move, gold jewellery imports in India were restricted by the government. It slapped the clampdown on the import of gold jewellery and parts on Tuesday. A shocking surge in gold jewellery import was seen as the reason for the clampdown.
Significantly, the restriction was slapped on imports from all countries barring United Arab Emirates, which has a free-trade agreement (FTA) with India. The notification said, “However, import under a valid India-UAE CEPA TRQ shall be permitted without restricted import authorisation.”
This was announced through a notification by the Directorate General of Foreign Trade (DGFT) and applied to items like gold studded with pearls, and diamonds. The various categories were “free” for imports till now.
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Notably, a 30 times increase in gold jewellery imports from $51.51 million a year ago to $1.55 billion in FY24 was seen and that may well have forced the government to issue a clampdown notice. A government official said that the gold jewellery restriction was announced as the government observed an ‘unusual surge’ in import of these items, Business Standard added. Before moving forward, government is looking for the reason for this surge.
Significantly, any dip as a result of new restrictions will help save India a hefty import bill.
A PTI report said that this step by the government may affect imports from Indonesia and Tanzania. India also has a free trade agreement with Indonesia. The restriction indicates that these goods will now need a licence or permission from the government to be imported into India.
Gold prices in India hit a record of Rs 74,442 for 10 grams in the third week of May, and have jumped 17% so far in 2024, after a rise of 15% in 2023. “Rising gold prices are having a greater impact on jewellery demand compared to investment demand,” Reuters quoted Amit Modak, chief executive of PN Gadgil and Sons, a jeweller based in the western city of Pune, as saying.
In a sudden move, gold jewellery imports in India were restricted by the government on Tuesday. Commodities Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
