Page 18 - Bullion World Volume 04 issue 12 December 2024

Bullion World | Volume 4 | Issue 12 | December 2024

2024: Shaping

the Future of

Precious Metals

at GIFT-IFSC

Mr Ramakrishnan Padmanabhan,
General Manager at Department
of Metals and Commodities, IFSCA

The exchange ecosystem at GIFT-IFSC saw a pivotal
transformation in 2023, driven by significant policy
measures from the Government of India. Among
these, the government enabled Tariff Rate Quota
(TRQ) holders to import gold through purchases
on India International Bullion Exchange (IIBX), and
qualified jewellers were permitted to import silver
via the same platform. These measures provided
a much-needed boost to trade flows, leading to
steady daily trading volumes. Silver, in particular,
benefited significantly due to the concessional
duty rate of approximately 6% under the India-UAE
Comprehensive Economic Partnership Agreement
(CEPA). However, gold volumes remained subdued,
primarily due to high customs duties set at 15% and
market anticipation of new quota allocations for FY
2024-25. The total quota allocation for gold imports
for the fiscal year is estimated at 160 tonnes.

Gold trading volumes on IIBX have already exceeded
50 tonnes in FY 2024-25 due to reduced customs
duties which were announced in the Union Budget
2024 post the General elections at 6% and the India-
UAE CEPA’s concessional rate for gold at 5%. Market
projections suggest that this figure could potentially
double, reaching the landmark figure of 100 tonnes,
which would account for approximately 12.5% of
India’s total gold imports, estimated at 800 tonnes
for the fiscal year. This significant growth in volumes
marks a turning point for the exchange, which faced
challenges during its initial years. Real activity on the
exchange only began after the government enabled
imports under the India-UAE CEPA by the TRQ
holders through IIBX.

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