India-UAE CEPA gold quota route stalls as DGFT court cases freeze preferential imports
Preferential gold import channel under India-UAE CEPA remains virtually shut due to litigation over DGFT quota allocation, even as Centre doubled gold/silver duty to 15%. FY26 TRQ collapsed to 8.58 tonnes vs 140 tonnes in FY25. Jewellery retailers face supply pressure entering wedding season; UAE flows continue via normal 15% duty route.
What happened
India-UAE CEPA gold import quota route is virtually closed due to court cases over DGFT quota allocation, even as the Centre doubled gold/silver duty to 15%.
Key facts
- 15% duty
- 6% prior duty
- 795 tonne FY24 imports
- 757 tonne FY25 imports
- 40 tonne TRQ FY24
- 140 tonne TRQ FY25
- 8.58 tonne TRQ FY26
- 100kg cap per license
- 45.6 tonne April imports
Why this matters
Litigation-driven CEPA paralysis creates a window to lock multi-year UAE bullion supply agreements or equity-linked sourcing tie-ups while smaller jewellers struggle with working capital, positioning for consolidation if the quota route reopens.