India Considers Quota-Based Duty Concessions On Gold Imports From Switzerland Under EFTA Agreement

New Delhi, Mar 7 (KNN) India is contemplating granting quota-based duty concessions on gold imports from Switzerland under the proposed free trade agreement with the European Free Trade Association (EFTA) to foster trade relations.

Officials have revealed to BS that alongside this initiative, India has also sought a substantial investment commitment of USD 50 billion within the first decade post the agreement's implementation, followed by another USD 50 billion over the subsequent five years.

The EFTA, comprising Iceland, Liechtenstein, Norway, and Switzerland, represents a formidable economic bloc with which India aims to deepen its trade ties. 

Switzerland, a pivotal member, has specifically requested duty concessions on inbound shipments of gold. 

This request holds substantial weight considering that gold constitutes approximately 80 per cent of India's total imports from Switzerland.

Importantly, the proposed quota-based concessions to Switzerland carry significant implications, especially given India's existing trade dynamics.

Currently, India has already extended a 1 per cent duty concession to gold importers under a tariff rate quota in its trade pact with the UAE. 

Consequently, officials emphasize the necessity of extending similar concessions to the EFTA, particularly in light of ensuring investment stability.

Presently, gold imports into India attract a 12.5 per cent basic customs duty along with a 2.5 per cent cess. 

Despite these duties, gold imports witnessed a remarkable 30 per cent year-on-year surge, amounting to approximately USD 38 billion in the period spanning April to January of FY24.

The discussions surrounding quota-based duty concessions underscore India's strategic approach towards enhancing trade relations while simultaneously addressing the demands of crucial trading partners. 

As negotiations progress, the outcome of these deliberations holds the potential to significantly impact India's economic landscape, particularly within the realm of international trade and investment.

(KNN Bureau)