Duty Cut on Precious Metals to Contain Smuggling to Cost Govt Rs 28,000 Crore in Revenues: GTRI

In FY 2024, India imported gold worth USD 45.54 billion and silver worth USD 5.44 billion, while exporting jewellery worth USD 13.23 billion.”With the reduction of the Most Favored Nation (MFN) duty from 15 per cent to 6 per cent, this revenue loss was calculated,” GTRI Founder Ajay Srivastava said, adding, “while the government has not provided reasons for the tariff cuts, one possible explanation is to address the large quantities of bullion imported at concessional rates via the India-UAE Comprehensive Economic Partnership Agreement (CEPA)”.On critical minerals, it said India is a net importer of most critical minerals and zero duty imports may lead to the development of processing of these minerals.Currently, 70 per cent of the global processing of most critical minerals happens in China.The customs duty on several critical minerals has been reduced to zero. These minerals include antimony, beryllium, bismuth, cobalt, copper, gallium, and germanium.”The duty reductions reflect a strategic move to bolster domestic industries, promote exports, and reduce dependency on imports,” it said.It added that while these changes present opportunities for growth and development, careful monitoring and adjustments will be necessary to prevent misuse and ensure the intended economic benefits are realised.

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