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Government notifies gold import of 160 tonnes in FY25 from UAE at concessional rate

29 Aug 2024 Evaluate

The government has notified the import of up to 160 tonnes of gold by manufacturers and traders from the UAE at a concessional rate for 2024-25 under the India-UAE free trade agreement. The agreement, officially dubbed as 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 per cent tariff concession under Tariff Rate Quota (TRQ). Last fiscal, India notified 140 tonnes of gold. 

India's gold imports from UAE rose 147.6 per cent from $3 billion in FY23 to $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), dipped by 4.23 per cent to $12.64 billion during April-July 2024-25 due to global economic uncertainties.

The government has slashed the customs duty on gold and silver to 6 per cent from 15 per cent in the Budget. In 2023-24, India's gold imports surged by 30 per cent to $45.54 billion. Switzerland is the largest source of gold imports, with about 40 per cent share, followed by the UAE (over 16 per cent) and South Africa (about 10 per cent). The precious metal accounts for over 5 per cent of the country's total imports.

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