Q. Consider the following statements:
Statement-I: India-UAE comprehensive economic partnership agreement (CEPA) allows unlimited imports of gold, silver, platinum, and diamonds from the UAE into India with zero tariffs.
Statement-II: India-UAE comprehensive economic partnership agreement (CEPA) aims at keeping prices of gold and silver competitive for Indian jewelers.
Statement-III: Gold, silver, platinum, and diamonds are in high demand in India.
Which one of the following is correct in respect of the above statements?
Quarterly-SFG-Jan-to-March
Red Book

[A] Both Statement-II and Statement-III are correct and both of them explain Statement-I.

[B] Both Statement-II and Statement-III are correct, but only one of them explain Statement-I.

[C] Only one of the Statements II and III is correct and that explain Statement-I

[D] Neither Statement-II nor Statement-III is correct.

Answer: A
Notes:

Explanation –

Statement-I: The India-UAE CEPA allows for duty-free imports of gold, silver, platinum, and diamonds from the UAE into India, but this is being implemented gradually. For example, gold will be duty-free from 2026 and silver from 2030.

Statement-II is correct. One of the main aims of the CEPA is to keep prices of gold and silver competitive for Indian jewelers. The agreement is intended to provide Indian jewelers with access to raw materials at more competitive prices.

Statement III is correct. India is noted as a major importer and consumer of gold, silver, platinum, and diamonds. Hence, zero tariffs would reduce the import cost on the imported precious metals.

Hence, both Statement II and Statement III help explain Statement I.

Source: The Hindu

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