Imports

Titan Company Ltd has assured investors and consumers that its jewellery businesses, including Tanishq and CaratLane, remain insulated from short-term gold supply disruptions despite industry concerns surrounding import licence renewals and geopolitical uncertainty in the Middle East. Chief Financial Officer Ashok Sonthalia said the company’s gold exchange programme has been operating successfully since the third quarter and can be expanded further if necessary. Titan has also prepared contingency mechanisms to manage potential supply challenges.

India’s trade with the Middle East witnessed a sharp contraction in March, with exports falling nearly 58 percent and imports declining over 51 percent, following escalating geopolitical tensions in the region. The disruption stems from a military escalation involving the United States and Israel targeting Iran, which has temporarily affected operations along the critical Strait of Hormuz. As a vital maritime corridor for India’s energy imports and export shipments, the disruption has significantly impacted trade volumes.

India’s edible oil imports rose 12 percent year-on-year to 11.73 lakh tonnes in March, driven primarily by a sharp increase in crude palm oil shipments, according to the Solvent Extractors’ Association of India. However, industry projections suggest import volumes may moderate in the coming months due to elevated global prices and rising freight costs amid geopolitical tensions in West Asia.

India’s imports of telecom instruments from China rose sharply to USD 6,371 million (Rs 59,500 crore) in the 2023-24 fiscal year, reflecting sustained demand for network infrastructure and consumer devices. Overall telecom imports also increased to USD 17,010 million from USD 13,333 million in 2019-20, signaling robust sector growth. While the rise underscores India’s dependence on Chinese technology, the government has simultaneously launched initiatives to strengthen domestic telecom manufacturing and reduce import reliance.

India has imposed immediate restrictions on the import of gold, silver, and platinum jewellery to address concerns over the misuse of free trade agreements (FTAs). The revised policy shifts these imports from a “free” to a “restricted” category, requiring importers to obtain licenses from the regulator. Notably, the curbs apply regardless of prior contractual obligations, including advance payments or shipments already in transit.

Sri Lanka has initiated high-level discussions with Russia to explore the procurement of refined petroleum products, signaling a strategic effort to diversify energy sources amid global market uncertainty. The talks, led by senior officials including Russia’s Deputy Energy Minister, reflect Colombo’s intent to secure stable fuel supplies while reducing exposure to geopolitical disruptions. With parallel negotiations expected with India, Sri Lanka is adopting a multi-pronged approach to energy security.

India is exploring ways to unlock an estimated Rs. 830 lakh crore (approximately USD 10 trillion) worth of household gold to strengthen its financial system and reduce reliance on imports. Policymakers and industry experts emphasize that shifting gold from physical assets into financial instruments could ease pressure on the current account deficit while enhancing economic productivity. With the gems and jewellery sector already contributing significantly to exports and employment, financialisation of gold is seen as a transformative opportunity.

India has extended the validity of gold import licenses issued under its trade agreement with the United Arab Emirates, citing ongoing geopolitical disruptions affecting global trade and logistics. The move allows importers additional time—until June 30, 2026—to utilize tariff rate quota (TRQ) benefits that offer concessional duties on gold imports. Originally set to expire on March 31, the extension reflects policy flexibility in response to instability in West Asia.