Nifty99000 100%

Sensex99000 100%

Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: 4.0
Article rating: 3.9
Article rating: 5.0
Article rating: 4.0
Article rating: 4.5
Article rating: 3.8
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating


Considering review of import duty on gold: Official

Author: IANS/Saturday, December 2, 2017/Categories: Gold

Considering review of import duty on gold: Official

New Delhi - The government is considering a relook at the import duty on gold in order to curtail the arbitrage opportunities resulting from free trade agreements (FTAs) but without hurting the genuine requirement of business, Commerce Secretary Rita Teaotia said.

The top official's observation comes in the wake of a surge in gold imports earlier this year from South Korea, which signed an FTA with India in 2010. In August this year, the Indian government responded by restricting imports of gold and silver items from South Korea.

"I think the real issue on why free trade agreements tend to be leveraged is the issue that we have been raising again and again and that is the import duty on gold. This is a matter that the Government of India is seized of," Teaotia said at the Gold Summit here organised by the Gem and Jewellery Export Promotion Council.

"There are implications on both sides and I think we will have to work to come to some sort of balance on the duty issue. It certainly needs to be addressed because as long as there is arbitrage, there will be people who will try to game the system," she said.

Gold imports from South Korea more than quintupled to $339 million between July-August this year over the same period last year.

On the issue of FTAs, Teaotia said that the government engages in consultations with stakeholders before entering into such agreements.

"I do want to make it very, very clear that there is a full fledged consultation with industry sectors before any single line is conceded in a trade agreement," she said.

"The availability of gold has certainly been provided for through the nominated agencies, which, I believe, should address the requirements of the medium and small scale industries, who would need that because that is allowed to come in without the payment of 10 per cent duty."

India is the world's biggest consumer of gold, while the country's annual exports of the yellow metal and gold jewellery is only to the tune of around $7 billion. 

Print Rate this article:
No rating

Number of views (317)/Comments (0)

rajyashree guha


Other posts by IANS
Contact author

Leave a comment

Add comment



Ask the Finapolis.

I'm not a robot
Dharmendra Satpathy
Col. Sanjeev Govila (retd)
Hum Fauji Investments
The Finapolis' expert answers your queries on investments, taxation and personal finance. Want advice? Submit your Question above
Want to Invest



The technical studies / analysis discussed here can be at odds with our fundamental views / analysis. The information and views presented in this report are prepared by Karvy Consultants Limited. The information contained herein is based on our analysis and upon sources that we consider reliable. We, however, do not vouch for the accuracy or the completeness thereof. This material is for personal information and we are not responsible for any loss incurred based upon it. The investments discussed or recommended in this report may not be suitable for all investors. Investors must make their own investment decisions based on their specific investment objectives and financial position and using such independent advice, as they believe necessary. While acting upon any information or analysis mentioned in this report, investors may please note that neither Karvy nor Karvy Consultants nor any person connected with any associate companies of Karvy accepts any liability arising from the use of this information and views mentioned in this document. The author, directors and other employees of Karvy and its affiliates may hold long or short positions in the above mentioned companies from time to time. Every employee of Karvy and its associate companies is required to disclose his/her individual stock holdings and details of trades, if any, that they undertake. The team rendering corporate analysis and investment recommendations are restricted in purchasing/selling of shares or other securities till such a time this recommendation has either been displayed or has been forwarded to clients of Karvy. All employees are further restricted to place orders only through Karvy Consultants Ltd. This report is intended for a restricted audience and we are not soliciting any action based on it. Neither the information nor any opinion expressed herein constitutes an offer or an invitation to make an offer, to buy or sell any securities, or any options, futures or other derivatives related to such securities.

Subscribe For Free

Get the e-paper free