India imposes restrictions on gold jewellery imports, UAE exempt

The Directorate General of Foreign Trade (DGFT) has recently enforced restrictions on the import of certain types of gold jewellery.

The limitations, detailed in notifications released on June 11, apply to imports of gold jewellery adorned with pearls, diamonds, and other precious stones, as well as gold parts.

These restrictions affect imports from all nations, with the exception of the UAE, which benefits from an exemption under the Comprehensive Economic Partnership Agreement (CEPA) between the two countries.

The decision follows concerns over a sudden influx of imports from countries such as Tanzania and Indonesia, which were causing market imbalances.

Concurrently, the government has imposed similar restrictions on the import of gold jewellery and parts from all countries except the United Arab Emirates, its free-trade agreement partner.

The move, announced by the Directorate General of Foreign Trade (DGFT), reclassifies items such as finished gold jewellery—featuring pearls, diamonds, and other precious stones—as well as gold parts, from the "free" category to the "restricted" category.

The exemption for the UAE stems from the existing FTA between the two nations since May 2022.

These measures have been introduced in response to an "unusual surge" in inbound shipments, aiming to regulate the gold market effectively.