UAE share of India’s gold imports climbs as FTA tariff gap draws scrutiny

India’s gold-bar imports rose 47.1% to $11.01 billion in April–June, with UAE shipments up 124.8% to $3.14 billion. The UAE’s share reached 28.5%, versus 18.7% a year earlier, prompting calls for tighter origin checks on imports receiving the India-UAE FTA’s 14% tariff.

— Source publishedWed, 2 Sept, 2026, 19:59 IST·First seen Wed, 2 Sept, 2026, 20:15 IST·Source ET Small Business

What happened

Indian jewellery and bullion sector · India’s gold imports rose sharply, driven disproportionately by UAE shipments benefiting from a 1 percentage point

Key facts

  • India gold-bar imports rose 47.1% to $11.01 billion in April-June 2026
  • UAE gold imports rose 175.2% to $649.4 million in June 2026
  • UAE gold imports rose 124.8% to $3.14 billion in April-June 2026
  • UAE share of quarterly gold imports increased to 28.5% from 18.7%
  • India-UAE FTA gold tariff is 14% versus the standard 15%

Why this matters

Prioritize UAE supply partnerships with auditable provenance, while assessing alternative refining and import channels that can preserve tariff benefits if origin rules tighten.

What to watch

  • Indian customs circulars on UAE CEPA gold certificates of origin, refinery documentation or enhanced examination requirements.
  • Commerce Ministry statements on misuse of FTA concessions, CEPA review discussions or gold-specific rule-of-origin changes.
  • Monthly UAE share of India gold imports, especially whether it remains above roughly 25% after scrutiny increases.
  • Gold import clearance delays, UAE-origin bullion premiums and reported shipment rerouting through other FTA-linked hubs.
  • Jewellery industry lobbying from domestic refiners, bullion associations and organized retail chains.
  • Large jewellery chains diversify bullion procurement across domestic banks, nominated agencies and non-UAE overseas suppliers to reduce customs-disruption risk.
  • Organized jewellers strengthen bullion provenance records and supplier audits, using compliance as a differentiator versus smaller unorganized competitors.
  • Bullion dealers may widen premiums for UAE-origin material if inspections delay releases, temporarily lifting working-capital needs for jewellery retailers.
  • Retailers could accelerate recycled-gold collection and exchange offers to lower reliance on imported bullion during potential sourcing volatility.