New Delhi is charting a bold new course in its precious metals strategy. After ramping up oil and gas purchases from the United States to meet energy demands, India is now set to pivot its gold and silver imports away from the UAE toward America. A senior government official revealed that this strategic shift aims to leverage lower costs and diversify supply chains.
The move comes at a time when global trade dynamics are reshaping rapidly. By sourcing more gold and silver—including scrap and refined forms—from the US, India anticipates downward pressure on domestic prices. This could ease the burden on jewelers, investors, and consumers alike. Moreover, it promises to narrow India’s substantial trade surplus with the US, fostering a more balanced bilateral relationship.
America stands as a powerhouse in the global precious metals market, exporting billions worth to major buyers like Canada, India, and the UK. These shipments encompass raw materials, polished bars, and even jewelry components. In agriculture, India enjoys a $1.3 billion surplus with the US, exporting $2.8 billion while importing $1.5 billion in non-marine products. However, all US agricultural imports must adhere to stringent biosecurity standards, with no tolerance for genetically modified foods and tariff-rate quotas on select items.
Beyond metals, the interim India-US trade pact opens doors for India’s data center sector. Previously, import duties on enterprise GPU servers ranged from 20-28%, making setups costlier than in Singapore. Tariff reductions could slash costs by up to 14%, spurring investments in advanced tech infrastructure.
The broader agreement slashes duties on $30.94 billion of Indian exports from 50% to 18%, and eliminates them entirely on $10.03 billion worth. This boosts competitiveness for textiles, leather, gems, jewelry, agriculture, machinery, pharmaceuticals, and tech products. In 2024, India’s exports to the US hit $86.35 billion, and this deal could propel further growth while safeguarding farmers, MSMEs, and domestic industries through balanced provisions.