The quotas are for the import of 140 tons of gold from UAE in total in the financial year that started on April 1 with a duty that is one percentage point lower than India’s standard 15% gold import duty.
India is the world’s second-largest gold consumer and imports the bulk of its gold. It signed a broad trade and investment pact with the UAE last May which aims to cut tariffs and effectively increase annual trade between the two nations to $100 billion within five years.
Under the agreement, over a period of five years, the quota to import gold at a lower duty from UAE will be raised to as much as 200 tons.
Aruna Gaitonde, Editor in Chief of the Asian Bureau, Rough&Polished