Download Learnerz IAS app from the Play Store now! Download



India's silver import UPSC NOTE


  • Almost all of India’s silver imports are now being handled by a few private players bringing the white metal from Dubai through the GIFT City exchange, which could cause significant revenue losses for the exchequer over time.

  • A trade research body has sought a probe into the relationships between export and import firms to identify and address any potential conflicts of interest, while warning that this silver market trend could extend to gold, platinum, and diamonds, further disrupting traditional import practices and market dynamics.

  • India’s imports of gold and silver from the UAE had jumped 210% in 2023-24 to $10.7 billion. Total silver imports stood at $5.4 billion

  • Earlier attempts by some banks to import silver from the UAE through other ports were questioned for not meeting rules of origin of the India-UAE free trade deal, think tank Global Trade Research Initiative (GTRI) flagged in a report.

  • The key concern is how the imports cleared through GIFT City meet the rules of origin requirements specified in the India-UAE CEPA [Comprehensive Economic Partnership Agreement] when importers from other ports fail to meet these

  • India levies a 15% import duty on silver and only allows institutions nominated by the RBI and the Directorate General of Foreign Trade (DGFT) to import the precious metal. 

  • However, the GIFT City exchange does not limit imports to RBI/DGFT-nominated agencies, registers private traders, and has found no rules of origin issues as flagged by customs elsewhere

  • As the tariff becomes zero over the next eight years, all silver imports will likely come from the UAE, resulting in a revenue loss of ₹6,700 crore. 

  • This trade is driven solely by the tariff arbitrage offered by India

  • The key concern is how imports cleared through GIFT City meet the rules of origin requirements specified in the India-UAE FTA when importers from other ports fail to meet these. 

  • This is strange as the Dubai-based suppliers may be the same in both cases. 

  • There is apprehension that imports from GIFT City might violate rules of origin conditions



Amritsar,1,April 2024,301,Art & Culture,1,August 2023,251,Courses,7,Daily Current Affairs,48,December 2023,189,Disaster Management,2,Environment and Ecology,184,February 2024,228,Foundation Course,1,GDP,1,GEMS Club,1,GEMS Plus,1,Geography,188,Govt Schemes,2,GS 2,1,GS1,6,GS2,61,GS3,23,GST,1,History,10,Home,3,IAS Booklist,1,Important News,71,Indian Economy,164,Indian History,8,Indian Polity,183,International Organisation,12,International Relations,140,Invasive Plant,1,January 2024,240,July 2023,281,July 2024,159,June 2022,6,June 2023,268,June 2024,324,March 2024,238,May 2022,17,May 2024,330,Mentorship,2,November 2023,169,October 2023,203,Places in News,2,Science & Technology,121,Science and Technology,93,September 2023,205,UPSC CSE,111,
Learnerz IAS | Concept oriented UPSC Classes in Malayalam: India's silver import UPSC NOTE
India's silver import UPSC NOTE
Learnerz IAS | Concept oriented UPSC Classes in Malayalam
Loaded All Posts Not found any posts VIEW ALL Readmore Reply Cancel reply Delete By Home PAGES POSTS View All RECOMMENDED FOR YOU LABEL ARCHIVE SEARCH ALL POSTS Not found any post match with your request Back Home Sunday Monday Tuesday Wednesday Thursday Friday Saturday Sun Mon Tue Wed Thu Fri Sat January February March April May June July August September October November December Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec just now 1 minute ago $$1$$ minutes ago 1 hour ago $$1$$ hours ago Yesterday $$1$$ days ago $$1$$ weeks ago more than 5 weeks ago Followers Follow THIS PREMIUM CONTENT IS LOCKED STEP 1: Share to a social network STEP 2: Click the link on your social network Copy All Code Select All Code All codes were copied to your clipboard Can not copy the codes / texts, please press [CTRL]+[C] (or CMD+C with Mac) to copy Table of Content