New Delhi, Feb. 12 -- India's negotiations for a free trade agreement (FTA) with Peru face a significant hurdle: duty concessions on gold, which account for a substantial portion of imports from the South American nation.
According to a report by the Global Trade Research Initiative (GTRI), gold imports from Peru constituted 80 per cent of India's imports from the country in the fiscal year 2023.
Gold, being a high-value product with low volume, currently attracts a 10 per cent basic customs duty in India.
Even minor tariff concessions under the proposed FTA could result in a considerable surge in imports, similar to what was witnessed after tariff reductions in the India-UAE free trade agreement.
With talks set to resume this week ...