The Indian government on 12 July 2023 imposed import restrictions on certain gold jewellery and articles, a move which would help cut import of non-essential items and contain trade deficit.
Now an importer would need permission of a licence from the government for importing these gold products. However, the directorate general of foreign trade (DGFT) said that the restrictions will not be there for imports under the India-UAE free trade agreement.
In a notification, the DGFT said that the import policy of these products 'has been amended from free to restricted with immediate effect'. Imports of pearls, precious and semi-precious stones dipped by 25 per cent to about $4 bn during April-May this fiscal. Gold imports too contracted by about 40 per cent to $4.7 bn in the same period.
Import of certain gold jewellery stood at over $110 mn in April-May this fiscal and it was mainly imported from countries like UAE, Indonesia and the US.
Aruna Gaitonde, Editor in Chief of the Asian Bureau, Rough & Polished