Govt Curbs Gold, Silver Jewellery Imports to Combat FTA Misuse

• Government immediately restricts imports of gold, platinum, and silver jewellery.
• Move aims to prevent misuse of Free Trade Agreements (FTAs), particularly the India-Asean FTA.
• Import policy for CTH 7113 items (gold, silver, platinum jewellery) changed from 'Free' to 'Restricted'.
• Importers now require permission or a license from the Directorate General of Foreign Trade (DGFT).
• Exemptions apply to 100% Export Oriented Units, SEZs, and imports under Gems and Jewellery export schemes.

Key Questions Answered

How will these import curbs affect jewellery prices?

The import curbs on gold, platinum, and silver jewellery, effective immediately, are intended to check the misuse of free trade agreements.

Could this move impact India's trade relations?

Yes, disruptions in the Strait of Hormuz could impact India's trade relations.

What are the long-term effects on the jewellery industry?

The jewellery industry faces disruptions in West Asia affecting exports and increasing logistics costs. Brands like Tanishq and Kalyan Jewellers may see a slowdown in GCC sales.