New Delhi. Gold-Silver Import from UAE: India's free trade agreement (FTA) partner United Arab Emirates (UAE) has seen a rise in its import of gold and silver . It rose 210 per cent to $10.7 billion in FY 2023-24.

To reduce this rise, there is a need to revise the concessional customs duty rates. Economic research institute Global Trade Research Initiative (GTRI) presented a report on this.

According to GTRI report, this sharp increase in gold and silver imports is mainly driven by import duty concessions extended by India to the UAE under the India-UAE Comprehensive Economic Partnership Agreement (CEPA).

What is the import duty on silver?

According to the GTRI report, India offers a 7 percent duty on silver imports and a 1 percent rebate on 160 metric tonnes. The CEPA was signed in February 2022 and came into force in May 2022.

Apart from this, India has facilitated the import of gold and silver by allowing private companies to import from UAE through India International Bullion Exchange (IIBX) in GIFT City. Earlier, this benefit was available only to a few authorized agencies.

What is the total import between India and UAE

According to the report, India's total imports from the UAE fell by 9.8 per cent from US$ 53.2 billion in FY23 to US$ 48 billion in FY24. At the same time, gold and silver imports grew by 210 per cent from US$ 3.5 billion to US$ 10.7 billion.

Imports of all other products fell by 25 per cent, from US$49.7 billion in FY23 to US$37.3 billion in FY24.

Ajay Srivastava, Founder, GTRI said

The high import duty of 15 per cent on gold, silver and jewellery in India is the root of the problem. Consider reducing the tariff to 5 per cent. This will reduce large-scale smuggling and other abuses.

Srivastava suggested the government implement some measures to help India balance its trade policies, protect domestic revenues and ensure fair competition in the import of precious metals and jewellery.