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Certain gold jewelry imports are restricted by the government, according to reports

<p>The government has taken action that will reduce imports of non-essential goods and assist to keep the trade imbalance in check. On Wednesday, restrictions were put in place for a number of items, including gold jewelry. To import goods containing gold, an importer would need government approval. The Directorate General of Foreign Trade (DGFT) clarified that the trade agreement between India and the UAE places no limitations on imports. DGFT also announced that the import policy for certain goods has changed from being free to being limited with immediate effect.</p>
<p>India imports 800-900 tonnes of gold annually. Including precious and semi-precious stones, the import of pearls fell by 25.36% to roughly $4 billion in April and May of current fiscal year 2023–2024. Additionally, there was a decline in gold imports, which fell by almost 40% to $4.7 billion during the same period. Imports of goods fell overall in fiscal year 2023–24 by 10.24% to $107 billion. The merchandise trade deficit in April–May 2022 was $40.48 billion, while in April–May 2023, it was $37.26 billion. In April and May of this fiscal year, imports of specific gold jewelry totaled $110 million and came mostly from the US, Indonesia, and the United Arab Emirates.<img decoding=”async” class=”alignnone wp-image-75727″ src=”https://www.theindiaprint.com/wp-content/uploads/2023/07/www.theindiaprint.com-certain-gold-jewelry-imports-are-restricted-by-the-government-according-to-reports-gold1200-1689223982-750×422.jpg” alt=”” width=”1560″ height=”878″ srcset=”https://www.theindiaprint.com/wp-content/uploads/2023/07/www.theindiaprint.com-certain-gold-jewelry-imports-are-restricted-by-the-government-according-to-reports-gold1200-1689223982-750×422.jpg 750w, https://www.theindiaprint.com/wp-content/uploads/2023/07/www.theindiaprint.com-certain-gold-jewelry-imports-are-restricted-by-the-government-according-to-reports-gold1200-1689223982-1024×576.jpg 1024w, https://www.theindiaprint.com/wp-content/uploads/2023/07/www.theindiaprint.com-certain-gold-jewelry-imports-are-restricted-by-the-government-according-to-reports-gold1200-1689223982-768×432.jpg 768w, https://www.theindiaprint.com/wp-content/uploads/2023/07/www.theindiaprint.com-certain-gold-jewelry-imports-are-restricted-by-the-government-according-to-reports-gold1200-1689223982-390×220.jpg 390w, https://www.theindiaprint.com/wp-content/uploads/2023/07/www.theindiaprint.com-certain-gold-jewelry-imports-are-restricted-by-the-government-according-to-reports-gold1200-1689223982-150×84.jpg 150w, https://www.theindiaprint.com/wp-content/uploads/2023/07/www.theindiaprint.com-certain-gold-jewelry-imports-are-restricted-by-the-government-according-to-reports-gold1200-1689223982.jpg 1200w” sizes=”(max-width: 1560px) 100vw, 1560px” /></p>
<p>India’s gold imports fell by 24.15% to $35 billion in 2022–2023 due to the unpredictability of the world economy. In the fiscal year 2021–2022, imports of yellow line metal were around $46.2 billion, while exports of gems and jewelry fell to $38 billion, or 3%, in the previous fiscal year 2022–2023.</p>
<p>Colin Shah, the managing director of Kama Jewellery and a former chairman of the gems and jewelry industry, said in an interview that this move is being made by the government to balance the macroeconomics. He also mentioned that gold should be priced reasonably because it will support the maintenance of the gem and jewelry industry’s competitive edge for export.</p>
<p>This action was initiated as a result of recent observations that importers have been sourcing simple gold jewelry from Indonesia without paying import taxes by taking advantage of a regulatory weakness. India has never received gold jewelry from Indonesia, but in recent months, traders have brought in 3–4 tonnes of gold without paying any import duties.</p>
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