14 Oct 2013 Last updated at 08:31:52 GMT
NEW DELHI (Scrap Monster): With Indian government raising the import duty on gold bullion to 10% and those on gold jewellery to 15%, the exports of gold to India have declined drastically, reported Dubai Chamber of commerce and Industry. Data released by the Chamber yesterday indicates that exports and re-exports to India fell 18% over the previous year to Dh 3 billion.
India has long been a major market for Dubai exports. The exports and re-exports to India totaled Dh 83 billion last year. Gold, precious stones, pearls and metals accounted for almost half of UAE exports during that period to India.
The restrictions imposed by the Indian government are said to be solely responsible for the minus gold shipments to India. The lack of clarity on certain regulations is stopping the gold trade into the country.
Meanwhile, the neighboring Pakistan also reported de-growth in gold exports and re-exports from Dubai. During the initial eight-month period, gold shipments fell by 36% year-on-year to Dh 1.6 billion.
Meanwhile, the overall gold exports and re-exports by all members of the Dubai Chamber of Commerce and Industry totaled Dh 189.3 billion, growing 5% over the year. The growth in exports was boosted by robust demand in GCC countries, which accounted for nearly 58% of the total exports and re-exports.
Author: Paul Ploumis