The government has implemented restrictions on the import of platinum alloy with less than 99 percent purity in order to combat illicit imports of this precious metal blended with significant amounts of gold. Importers of such platinum alloys are now required to secure import authorization from the Directorate General of Foreign Trade (DGFT) for inbound shipments. This decision comes in response to instances where this alloy, blended with substantial amounts of gold, was imported to take advantage of the tariff variance between gold and platinum.
According to a notification from the DGFT, the import policy for platinum has been revised from free to restricted, except for platinum alloy with a purity of 99 percent or more by weight of platinum. To ensure a smooth supply of platinum for jewelry manufacturing and industrial purposes, the unrestricted import of platinum alloy with 99 percent or higher platinum purity is allowed.
Last year, the economic think tank GTRI called for an urgent review of the India-UAE trade agreement, citing concerns about unlimited imports of gold, silver, platinum, and diamonds from the UAE into India with zero tariffs. The organization highlighted that the current duty on gold imported from Dubai is 5 percent, which will decrease to zero in three years if the alloy contains 2 percent platinum. It was also claimed that many imports do not meet Rules of Origin conditions and therefore do not qualify for concessions.
In October 2024, India raised alarms about a surge in imports of silver products, platinum alloy, and dry dates from the UAE, urging the country to ensure compliance with the rules under the free trade agreement (FTA). The UAE agreed to review the concerns raised by India.
