India Restricts Tariff-Free Gold Imports

India, the world's second-largest consumer of gold, is restricting duty-free imports of the precious metal. The country's government has set new limits on gold imports for jewelry exporters, with a maximum of 100 kilograms per license. The primary goal of this decision is to reduce the volume of gold purchases from abroad. Under the new regulations, manufacturers must fulfill at least 50% of their previous export obligations to obtain a new license. Additionally, control mechanisms are being tightened: first-time applicants must undergo mandatory physical inspections to verify the actual existence of their facilities and production capacity. Furthermore, existing license holders are now required to submit independently audited reports certified by auditors every two weeks on gold import-export activities carried out. These new restrictions followed recent decisions by the Indian government to increase import tariffs on gold and silver from 6% to 15%. These measures aim to reduce foreign purchases of precious metals and ease pressure on foreign currency reserves, which has been driven by rising oil prices.

Source: Investing.com