- India's gold imports from UAE surged from $2.9B in 2022 to $16.5B in 2025
- India-UAE CEPA cut gold import tariffs by 1% under a Tariff Rate Quota system
- Gold import quota to rise from 120 to 200 tonnes by 2027, covering 25% of imports
India's trade agreement with the United Arab Emirates is coming under renewed scrutiny after a sharp rise in gold imports from Dubai significantly pushed up the country's bullion import bill.
Gold bar imports from the UAE have jumped from $2.9 billion in 2022, before the India-UAE Comprehensive Economic Partnership Agreement came into force, to $16.5 billion in 2025, according to trade data.
The India-UAE CEPA, which became operational in May 2022, allows gold imports from the UAE at tariffs 1 percentage point lower than the standard import duty under a Tariff Rate Quota mechanism. The annual quota started at 120 tonnes and is set to rise to 200 tonnes from 2027, potentially covering more than a quarter of India's total gold imports.
The tariff advantage widened further after India reduced the standard gold import duty from 15% to 6% in the 2024 Union Budget. As a result, gold imported from the UAE effectively entered India at a 5% duty, making Dubai-origin shipments more competitive.
Dubai's share in India's gold imports has since risen sharply from 7.9% before the trade pact to 28% in 2025.
The surge has coincided with a broader jump in India's overall gold imports, which rose from $36.5 billion in 2022 to nearly $72 billion in 2026, increasing pressure on India's trade balance and foreign exchange outflows.
Also Read: Behind The Gold Duty Hike: West Asia Crisis Prompts Government Move To Protect Forex, CAD
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