Govt restricts certain gold jewelry & articles amid swelling trade deficit
The union government on Wednesday restricted imports of certain gold jewellery and articles amid swelling trade deficit. As per the directorate general of foreign trade (DGFT) notification an importer would need a permission of licence from the government for importing these gold products. Trade gap had hit 5-month high in May as exports dropped 10% in May amid slowing demand from western countries. However, DGFT said that the restrictions will not be imposed imports under the India-UAE free trade agreement.
Imports of pearls, precious and semi-precious stones dipped by 25.36 per cent to about USD 4 billion during April-May this fiscal. Gold imports too contracted by about 40 per cent to USD 4.7 billion in the same period.
Overall merchandise imports during April-May this fiscal declined 10.24 per cent to USD 107 billion. The merchandise trade deficit for April-May 2023 stood at USD 37.26 billion against USD 40.48 billion during April-May 2022.
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