GTRI voices concerns over rise in precious metals import under UAE FTA
- The Global Trade Research Initiative (GTRI) expressed serious concern over a spurt in import of precious metals from the UAE under the free trade agreement and demanded an investigation as it is impacting the domestic jewellery industry and leading to potential annual revenue loss.
Highlights:
- GTRI said that by addressing these issues, authorities can ensure the integrity of import practices, safeguard domestic industries, and prevent significant revenue losses.
- Seeking an urgent review of the agreement, it said the India-UAE comprehensive economic partnership agreement (CEPA) allows unlimited imports of gold, silver, platinum, and diamonds from the UAE into India with zero tariffs in the coming years.
- This will lead to significant “annual revenue losses, move import business from banks to a few private traders, and replace top suppliers with Dubai-based firms,” it said in its report.
- “The zero-tariff policy under CEPA is projected to cause an annual revenue loss of ₹63,375 crore due to duty-free imports of gold and silver, based on FY24 import levels,” it said.
- It will also disrupt the domestic diamond and jewellery industry, with major imports coming from Gift City, which has transparency issues.
Prelims Takeaway:
- GTRI
- CEPA