India controls duty-free gold imports from Russia

The Indian government is considering a proposal to import gold from Russia to support the gem and jewelry export sector. This was announced by Minister of Trade and Industry Suresh Prabhu during an interview. The proposed scheme, if implemented, will help the country save currency, as well as significantly reduce the import bill in dollar terms.

According to the minister, the implementation of this proposal is subject to the exporters' agreement to ship the entire consignment after adding value. Imports will be on a bond basis and the cargo will be exempt from duty. However, gold imported in this way will not be allowed for domestic use. Prabhu noted that all gold must be re-exported after adding value. The proposal, initially presented to the Russian authorities during the minister's recent visit to the country, will be discussed at the highest level, he added.

The idea implies significance, mainly due to Russia's huge reserves of gold and the existing huge domestic potential for exporting jewelry from India. The duty-free import of gold is expected to greatly facilitate jewelry production, as it has long called for the removal of the 10% import duty on gold bars. The minister also called for an increase in imports of rough diamonds from Russia to India. By the way, India has the world's largest cutting and polishing center.

In addition, the minister invited Russian industrialists to visit the country in September as part of efforts to develop bilateral business between the countries. According to the latest trade statistics, bilateral trade between India and Russia showed a marked improvement from US $ 6.2 billion in 2015-16 to US $ 7.5 billion in 2016-2017.