The government on Friday pushed back against concerns that the India-United Arab Emirates trade pact has fuelled a surge in gold imports, with Commerce Secretary Rajesh Agrawal saying the agreement has had “no major impact” on bullion inflows so far.
Addressing a trade briefing, Agrawal said less than one tonne of gold has entered India under the tariff quota mechanism available through the India-UAE CEPA, indicating that the preferential quota route remains barely utilised.
He further said that any rise in bullion imports from the UAE has effectively been offset by a corresponding decline in imports from Switzerland, suggesting a shift in sourcing patterns rather than a net increase driven by the trade deal itself.
The comments come amid heightened scrutiny of India's gold import bill and debate over whether concessional duty access under the UAE pact has contributed to rising bullion inflows.
India's gold imports in April 2026 stood at $5.63 billion, up sharply from $3.1 billion a year ago, even as import quantities softened due to elevated global prices.
Officials said the increase in import value was largely driven by higher unit prices rather than a sharp jump in physical demand. Imports from the UAE, meanwhile, declined in both value and volume terms during FY26, leading to a fall in the country's share in India's overall gold imports.
On the broader trade outlook, Agrawal said rising oil prices linked to geopolitical tensions have not yet impacted export competitiveness. He added that early indicators for May exports remain encouraging despite the uncertain global environment.
The Commerce Secretary also said rupee depreciation remains a net positive for exporters and that the government continues to engage with industry to resolve trade-related issues and logistics bottlenecks.
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