The government has restricted import of gold and silver jewellery studded with diamonds amid the discount of $30 an ounce offered in Dubai.
In a notification issued on Wednesday, the Government imposed a ban on the import of gold and silver jewellery studded with low-value diamonds.
While both gold and silver prices have taken a beating of late, the long term prospects of both the precious metals appear to be firm given the raging war between the US and Iran.
With heavy bombings by Iran, the financial activities including bullion trade and tourism in Dubai have come to a standstill.
This has forced many bullion dealers to offer a discount of $30 an ounce. Once the flight services resume, the gold and silver jewellery may flow into India putting temporary pressure on domestic prices.
Amid this, the government has now amended the regulation concerning gold and silver and has issued a formal notification regarding the same.
According to the notification issued by the Directorate General of Foreign Trade, the import policy for these specific items has been reclassified from ‘Free’ to ‘Restricted.’ This rule has come into effect immediately and will remain operative until June 30.
The DGFT stated that, under this decision, controls will be exercised over the import of the relevant commodities.