Gold Import: Government Took A Big Decision On The Import Of Gold Ornaments And Many Articles, Know What Will Be The Effect

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India Gold Import: People’s love for gold in India is well known and the government also monitors the gold import figures. The consumption of gold in the country is very high and for this reason the import of gold here is also very high. Now the government has decided to restrict the import of this gold to some extent.

Government of India announced

The Indian government on Wednesday announced restrictions on the import of certain gold ornaments and other items. This move will help in banning the import of some non-essential items. Now the importers have to take license approval from the government to import these gold products.

An attempt to close loopholes in trade policy

According to Reuters news, India is the second largest consumer of precious metals in the world and the country introduced these rules to address some of the loopholes in its trade policy. The Ministry of Commerce and Industry has not given any information in this regard at present. However, DGFT said in a notification that the import policy of these products has been revised from ‘free trade’ to ‘restricted’ category with immediate effect.

Gold jewelery was coming from Indonesia without paying duty

The reason for taking this step is that the process of importing plain gold jewelery from Indonesia was going on for some time and no import tax was being paid for it. A Mumbai businessman says that Indonesia has never been an importer of gold jewelery for India, but for the past few months, importers have imported 3-4 tonnes of gold from Indonesia and paid no tax on it.

Gold imports are declining

Imports of pearls and precious stones fell by 25.36 percent to four billion dollars in April-May of the current financial year. Gold imports also fell by 40 percent to $4.7 billion during this period. It is worth mentioning that 15 percent tax is levied on the import of gold in India.

These restrictions will not apply to the UAE-India Free Trade Agreement

However, the Directorate General of Foreign Trade (DGFT) has clarified that the ban will not apply to imports under the Free Trade Agreement (FTA) between India and the United Arab Emirates (UAE).