New Delhi, May 13 -- A sharp increase in Indias import duty on gold—from 6 per cent to 15 per cent—could lead to higher inflows routed through Dubai under the India-UAE trade pact, according to the Global Trade Research Initiative (GTRI).
The think tank on Wednesday said the revised duty structure significantly alters the cost dynamics of precious metal imports under the India UAE Comprehensive Economic Partnership Agreement (CEPA).
Under the agreement, India allows gold imports from the UAE at tariffs one percentage point lower than the standard Most-Favoured-Nation (MFN) rate through a Tariff Rate Quota (TRQ) system.
GTRI noted, With the new MFN tariff structure taking effective duties to 15 per cent, gold imported under...