Refining India's Gold: Addressing Duty Disparities for Precious Metal Refiners

The precious metal refining sector, represented by MMTC-PAMP, urges the government to address duty disparities disadvantaging domestic refiners. CEO Samit Guha highlights duty gaps in free trade agreements, seeking input-related benefits to boost India's global refining status.

India's precious metal refining sector is seeking government intervention to address duty disparities that currently place domestic refiners at a disadvantage when compared to international imports under free trade agreements. This was highlighted by MMTC-PAMP Managing Director and CEO Samit Guha, during a recent statement on Friday.

Guha pointed out that existing duty structures, particularly through the SEPA route, create significant disparities between locally refined metal and imported bullion. This scenario hampers the competitiveness of the domestic market, placing local refiners at an economic disadvantage, although the government seems aware of these challenges.

Industry experts, including Guha, are advocating for future trade agreements to exclude gold and silver from lower duty structures, similar to past agreements post-SEPA. They argue that to enhance India's global standing in refining, incentives and duty differentials should be adjusted, either through FTAs or by revising current policies.

(With inputs from agencies.)