Note4Students
From UPSC perspective, the following things are important :
Mains level: India’s Gold Imports
Why in the News?
India is facing a rise in gold smuggling due to higher global gold prices, with a recent high-profile case where an actor was arrested for smuggling over 14 kg of gold from Dubai to Bengaluru.
Laws Against Gold Smuggling in India:
- Gold smuggling is regulated by the Customs Act, 1962.
- Sections 111 & 112 allow confiscation and fines for illegal imports.
- Section 135 provides up to 7 years imprisonment if the smuggled goods’ value exceeds ₹1 lakh.
- Under the Baggage Rules, 2016, men abroad for 1+ year can bring 20g duty-free (₹50,000 cap); women can bring 40g (₹1 lakh cap).
- Customs duty rates:
- 3% duty: Men (20-50g), Women (40-100g).
- 6% duty: Men (50-100g), Women (100-200g).
- 10% duty: Beyond these limits.
- The Bharatiya Nyaya Sanhita, 2023, punishes organized smuggling with 5 years to life imprisonment under Section 111.
- Under UAPA Section 15, smuggling that affects India’s monetary stability is treated as a terrorist act, attracting life imprisonment.
- The Supreme Court (2003) ruled that non-compliant imports are prohibited goods, liable for confiscation and punishment.
India’s Gold Imports:
- India is the second-largest gold consumer after China, with gold making up 5% of total imports, mostly for the jewellery industry.
- Major import sources: Switzerland (40%), UAE (16%), South Africa (10%).
- Budget 2024 reduced import duty from 15% to 6% to control smuggling and balance trade.
- In April-July 2024-25, gold imports dipped by 4.23%, easing pressure on the Current Account Deficit (CAD).
- April-June 2024:
- Gems & jewellery exports: US$ 6.87 bn.
- Diamonds: 53.47%, gold jewellery: 32.39% (US$ 608 mn), silver jewellery: 3.36%.
- Gold jewellery imports: US$ 88.61 mn (June 2024).
- Major production hubs: Surat, Mumbai, Jaipur, Thrissur, Nellore, Delhi, Hyderabad, Kolkata.
- India targets US$ 100 billion gems & jewellery exports by 2027, making it a focus sector for export promotion.
PYQ:[2016] What is/are the purpose/purposes of Government’s ‘Sovereign Gold Bond Scheme’ and ‘Gold Monetization Scheme’? 1. To bring the idle gold lying with Indian households into the economy. 2. To promote FDI in the gold and jewellery sector. 3. To reduce India’s dependence on gold imports. Select the correct answer using the code given below: (a) 1 only (b) 2 and 3 only (c) 1 and 3 only (d) 1, 2 and 3 |
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