India's Director General of Foreign Trade has changed the category of certain imported jewellery to 'restricted' from 'free'.
This means certain jewellery, imported from some countries will now entail a duty of 15%.
Essentially, importers will need the government's approval to buy gold jewellery studded with pearls, certain types of diamonds and other precious stones from different countries and pay a higher duty.
The restriction will be applicable to all countries except from the United Arab Emirates under Comprehensive Economic Partnership Agreement (CEPA) between the two countries, according to the DGFT notification dated June 11.
The government decision follows a 30-time jump in the import of gold to $1.5 billion in the financial year ending March 2024.
Bulk of the imports came after July 2024 when the government had opened doors for imports from countries with whom India has free trade agreements.
Now, the government is trying to block the route again.
India's trade deficit, the difference between imports and exports, rose to a five-month high of $19.1 billion in April 2024. The surge was driven by a jump in imports of gold and silver jewellery.
Meanwhile, gold prices on Wednesday (June 12) rose ₹50 to ₹71,540 per 10 gram in futures trade as speculators created fresh positions on a firm spot demand.
Fresh positions built up by participants led to a rise in gold prices, analysts said.
Also Watch: In an interview with CNBC-TV18, Colin Shah, Managing Director of Kama Jeweller, talked extensively about the Indian government’s restrictions on importing jewellery and parts. However, imports from the UAE are exempt due to the Free Trade Agreement (FTA).
This means certain jewellery, imported from some countries will now entail a duty of 15%.
Essentially, importers will need the government's approval to buy gold jewellery studded with pearls, certain types of diamonds and other precious stones from different countries and pay a higher duty.
The restriction will be applicable to all countries except from the United Arab Emirates under Comprehensive Economic Partnership Agreement (CEPA) between the two countries, according to the DGFT notification dated June 11.
The government decision follows a 30-time jump in the import of gold to $1.5 billion in the financial year ending March 2024.
Bulk of the imports came after July 2024 when the government had opened doors for imports from countries with whom India has free trade agreements.
Now, the government is trying to block the route again.
India's trade deficit, the difference between imports and exports, rose to a five-month high of $19.1 billion in April 2024. The surge was driven by a jump in imports of gold and silver jewellery.
Meanwhile, gold prices on Wednesday (June 12) rose ₹50 to ₹71,540 per 10 gram in futures trade as speculators created fresh positions on a firm spot demand.
Fresh positions built up by participants led to a rise in gold prices, analysts said.
Also Watch: In an interview with CNBC-TV18, Colin Shah, Managing Director of Kama Jeweller, talked extensively about the Indian government’s restrictions on importing jewellery and parts. However, imports from the UAE are exempt due to the Free Trade Agreement (FTA).
First Published: Jun 12, 2024 1:17 PM IST
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