Why in the News?
India is seeking a review of certain provisions of the free trade agreement (FTA) with the UAE, which came into force on May 1, 2022.
India-UAE Trade Relations: An Overview
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Concerns over Precious Metals Imports
- There has been a significant increase in imports of precious metals from the UAE under the trade agreement.
- Global Trade Research Initiative (GTRI) has raised concerns about the spurt in imports of gold, silver, platinum, and diamonds with zero tariffs in the coming years.
- GTRI’s report highlights potential revenue losses and a shift in import business from banks to private traders, favouring Dubai-based firms.
- It also claims that many imports do not meet the Rules of Origin conditions, making them ineligible for concessions.
Review of IT Hardware Import Regime
- When asked about the review of the new authorisation regime for monitoring imports of certain IT hardware products, Barthwal indicated that the government would make a decision at the appropriate time.
- The government had previously adjusted import restrictions on laptops and computers, allowing importers to bring in shipments under an ‘authorisation’ system until September.
