Why Indian import of diamond-studded gold jewelry is being curbed

Why Indian import of diamond-studded gold jewelry is being curbed

The Indian government has imposed restrictions on the import of gold and silver jewelry studded with low-value diamonds.

The move comes in response to a $30 per ounce discount offered in Dubai amid the ongoing US-Iran war.

Heavy bombings by Iran have brought financial activities, including bullion trade and tourism in Dubai, to a standstill.

Import policy changed from 'Free' to 'Restricted'

The Directorate General of Foreign Trade (DGFT) has issued a notification amending the import policy for gold and silver jewelry studded with low-value diamonds.

The policy has been changed from 'Free' to 'Restricted,' with immediate effect until June 30, 2026.

This decision is aimed at controlling the import of these specific items in India, as per the DGFT's statement.

Dubai's ongoing war discount could impact domestic prices

The ongoing conflict in the Middle East has led to a $30 per ounce discount by many bullion dealers in Dubai.

Once flight services resume, this could lead to an influx of gold and silver jewelry into India, temporarily affecting domestic prices.

The government's new policy is likely aimed at preventing such a scenario by restricting imports during this period.