India's Strategic Gold Import Duties: Navigating FTAs and Economic Interests

India imported gold from 48 countries in 2023-24 under varying import duties due to strategic trade interests outlined in free trade agreements (FTAs). Different rates are applied based on Most Favoured Nation status or specific FTA terms. These duties balance domestic industry needs and international negotiations.

India's gold import strategy in 2023-24 highlights a complex web of tariff regulations influenced by strategic trade interests under Free Trade Agreements (FTAs), as informed to Parliament recently.

The Minister of State for Commerce and Industry, Jitin Prasada, elaborated on this, noting that gold imports suffer varying duties based on Most Favoured Nation (MFN) terms or specific FTA agreements.

Under these regulations, import duties diverge significantly—from zero under trade deals with ASEAN, Korea, Japan, and Malaysia, to a tiered system under the India-UAE agreement—demonstrating a nuanced balance between international negotiations and domestic economics.