Govt Imposes Restrictions On Import Of Certain Gold Jewellery, Articles

The government on Wednesday imposed import restrictions on certain gold jewellery and articles, a move which would help cut the import of non-essential items, reports PTI.

According to PTI, Now an importer would need a permission of 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 25.36 per cent to about USD 4 billion during April-May this fiscal. Gold imports too contracted by about 40 per cent to USD 4.7 billion in the same period, according to PTI.

Overall merchandise imports during April-May this fiscal declined 10.24 per cent to USD 107 billion. The merchandise trade deficit for April-May 2023 stood at USD 37.26 billion against USD 40.48 billion during April-May 2022.

Mr. Colin Shah, Managing Director, Kama Jewelry on amendments in gold import policy, said, "The government has curbed imports of gold with specific riders. Imports of gold affect the trade deficit negatively. The latest trade at $22 bn was the highest in 5 months. The reduced gold imports will help balance the same. Heavy gold imports also impact the INR. Gold imports from UAE are allowed under CEPA to boost trade relations under the pact. Imports from UAE have been dismal despite the pact. Though the steps by the government is to balance the macroeconomics. Gold an a raw material should be available at reasonable prices for the Gems & Jewelry industry to maintain the competitive edge for exports."