New Delhi, Mar 5 (KNN) The Indian government has implemented new import regulations on platinum alloy with less than 99 percent purity, targeting potential exploitative trading practices.

As of Wednesday, importers must now obtain authorisation from the Directorate General of Foreign Trade (DGFT) before bringing such alloys into the country.

The move comes in response to discovered cases where platinum alloys blended with significant gold quantities were being imported to take advantage of tariff differentials between the two precious metals.

By revising the import policy from ‘free’ to ‘restricted,’ the government aims to close potential loopholes in international trade mechanisms.

Under the new guidelines, platinum alloys containing 99 percent or higher platinum purity will remain unrestricted, ensuring continued smooth supply for jewellery manufacturing and industrial applications.

This nuanced approach demonstrates the government’s intent to maintain legitimate trade while preventing potential fiscal circumvention.

The decision follows recommendations from the economic think tank GTRI, which previously highlighted concerns about the India-UAE trade agreement.

The think tank had pointed out that the current pact allows zero-tariff imports of precious metals, potentially creating opportunities for trade manipulation.

In October 2024, India had already raised concerns with the UAE regarding increased imports of silver products, platinum alloys, and other commodities, urging careful examination of trade agreement compliance.

The UAE had committed to investigating these potential rule circumventions, indicating ongoing diplomatic dialogue to ensure fair trading practices.

The new import restrictions represent a strategic intervention to protect economic interests and maintain the integrity of international metal trading regulations.

(KNN Bureau)