The government has notified the import of up to 160 tons of gold by manufacturers and traders from the UAE at a concessional rate for 2024-25 under the India-UAE free trade agreement, Report informs referring to Business Standard.

The agreement, officially dubbed as Comprehensive Economic Partnership Agreement (CEPA) came into force on May 1, 2022.

Under the agreement, India agreed to import up to 200 metric tons of gold annually from the UAE with a one percent tariff concession under Tariff Rate Quota (TRQ).
Last fiscal, India notified 140 tons, and 160 tons for 2024-25, the official added.

Think tank GTRI in its report in June stated that India's gold imports from UAE rose 147.6 percent from $3 billion in FY23 to $7.6 billion in FY24. It has sought a review of the agreement.

India's gold imports, which have a bearing on the country's current account deficit (CAD), dipped by 4.23 percent to $12.64 billion during April-July 2024-25 due to global economic uncertainties, according to government data.

India's gold imports, which have a bearing on the country's current account deficit (CAD), dipped by 4.23 percent to $12.64 billion during April-July 2024-25 due to global economic uncertainties, according to government data.

The government has slashed the customs duty on gold and silver to 6 percent from 15 percent in the Budget.

In 2023-24, India's gold imports surged by 30 percent to $45.54 billion.

Switzerland is the largest source of gold imports, with about 40 percent share, followed by the UAE (over 16 percent) and South Africa (about 10 percent).

The precious metal accounts for over 5 percent of the country's total imports.