India Gold Import: The government has taken a big decision on the import of some gold ornaments in India and under this, some changes have also been decided on the import of other articles.
India Gold Import: People’s love for gold in India is well known and the government also keeps an eye on the figures of gold imports. The consumption of gold in the country is very high and for this reason the import of gold is also very high here. Now the government has decided to curb the import of this gold to some extent.
Government of India announced
The Government of India has announced to impose restrictions on the import of some gold ornaments and other items on Wednesday. This step will help in banning the import of some non-essential items. Now importers will have to take license approval from the government to import these gold products.
Attempt to remove loopholes in trade policy
According to the news of Reuters, India is the second largest consumer of precious metals in the world and the country has brought these rules to remove some flaws in its trade policy. The Ministry of Commerce and Industry has not given any information about this at present. However, DGFT said in a notification that the import policy of these products has been revised from ‘free trade’ to ‘restricted’ category with immediate effect.
Gold jewelery was coming from Indonesia without paying duty
The reason behind taking this step is that the process of bringing plain gold jewelery from Indonesia was going on for some time and no import tax was being paid for it. A dealer in Mumbai says that Indonesia has never been an importer of gold jewelery for India, but for the last few months, importers have imported 3-4 tonnes of gold from Indonesia and have not paid any tax on it.
Import of gold is decreasing
In April-May of the current financial year, the import of pearls and precious gems has come down by 25.36 percent to four billion dollars. During this period, the import of gold has also decreased by 40 percent to $ 4.7 billion. Significantly, 15 percent tax is charged on the import of gold in India.
These restrictions will not apply to UAE-India free trade agreement
However, the Directorate General of Foreign Trade (DGFT) has clarified that this restriction will not apply to imports under the Free Trade Agreement (FTA) between India and the United Arab Emirates (UAE).
What do experts say
Colin Shah, Managing Director of Cama Jewellery, says that the government has reduced imports with certain conditions. The increase in gold imports has a negative impact on the trade deficit. The latest trade which was $22 billion was the highest in the last 5 months. Reducing gold imports will help balance the trade deficit. Due to more gold imports, the effect of rupee movement is also seen.
Imports from UAE have been allowed and have been approved as per the pact so that better improvement can be seen in the relations between the two countries. However, despite having a pact with UAE for some time, the import of gold has been disappointing. Although the government is making efforts to balance the macro economic figures. In order to keep the gems and jewelery industry competitive in the field of exports, it is very important to get gold at the right prices to use it as a raw material.
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