Customs duty cut on silver likely to give Centre breather for now

Move may help check spurt in imports from UAE under CEPA

The steep cut in Customs duty on silver in the FY25 Budget to 6 per cent from 15 per cent may provide the government temporary relief by checking the spurt in silver imports from the United Arab Emirates (UAE) under the Comprehensive Economic Partnership Agreement (CEPA).

In FY24, silver imports from the UAE jumped to $1.7 billion from only $11.18 million in FY23, according to commerce department data. In May, about 87 per cent of India’s silver imports came from Dubai.

In 2022, India signed the CEPA with the UAE, agreeing to gradually reduce the duty on silver imports to