UAE gold imports surge as 1% FTA tariff edge reshapes India’s sourcing
India’s gold-bar imports from the UAE rose 124.8% to $3.14 billion in April–June 2026, lifting the UAE’s share of imports to 28.5%. The shift follows a duty increase to 15%, while FTA-eligible UAE gold faces a 14% tariff—raising scrutiny of origin rules ahead of the festive season.
What happened
retail-company · India’s UAE gold imports surged under a 1% India-UAE FTA tariff advantage, prompting calls to review origin rules. Higher duties and Modi’s
Key facts
- India gold-bar imports rose 47.1% to $11.01 billion in April-June 2026 from $7.49 billion a year earlier
- Gold import duty increased from 6% to 15% on May 13
- FTA-eligible UAE gold imports face a 14% tariff versus the standard 15% tariff
- June 2026 gold imports from UAE rose 175.2% to $649.4 million from $235.9 million
- June imports from rest of world fell 17.7% to $1.32 billion from $1.60 billion
- April-June UAE gold imports rose 124.8% to $3.14 billion from $1.40 billion
- UAE share of quarterly Indian gold imports rose to 28.5% from 18.7%
- UAE accounted for $1.74 billion of the $3.53 billion rise in total quarterly imports
- CTI estimates annual gold consumption could fall to 500 tonnes from around 800 tonnes
Why this matters
Jewellery groups should evaluate UAE refinery, trading-house and logistics partnerships that provide traceable FTA-eligible supply, turning the tariff differential into a scalable sourcing advantage.
What to watch
- Customs notices, port-level inspections or rejection rates involving UAE CEPA/FTA certificates of origin.
- Monthly UAE share of India gold imports and whether the share remains above roughly 25% after the April-June spike.
- Changes in the duty differential between standard gold imports and FTA-eligible UAE imports.
- Festive-season bullion premiums, domestic gold-price spreads and jeweller inventory build rates.
- Evidence of UAE refinery capacity expansion, new Indian importer tie-ups or tighter rules on qualifying value addition.
- Margin commentary from listed jewellery chains on bullion sourcing costs, promotional intensity and inventory turns.
- Increase UAE supplier due diligence, including refinery traceability, certificate-of-origin controls and contingency sourcing contracts.
- Lock festive-season bullion procurement in staggered tranches rather than making a single directional gold-price bet.
- Use the potential landed-cost advantage selectively to defend making-charge offers, exchange schemes and wedding-jewellery promotions instead of fully passing savings through.
- Strengthen inventory visibility by source, purity, tariff treatment and customs-clearance status to prevent stock disruptions.
- Prepare an alternate sourcing mix from Switzerland, domestic refiners and existing non-UAE channels if FTA clearances tighten.