Gold Imports Jump 47% As UAE Emerges As Key Supplier; GTRI Flags FTA Tariff Concession
India imported gold worth $649.41 million from UAE in June, marking an increase of 175.2% compared with $235.94 million in June 2025, reports Saurabh Shukla.
Published : September 2, 2026 at 8:13 PM IST
New Delhi: India's gold bar imports surged sharply in the first quarter of the 2026-27 financial year, with the United Arab Emirates (UAE) emerging as a major driver of the increase, according to a report by the Global Trade Research Initiative (GTRI).
The development has drawn attention amid Prime Minister Narendra Modi's Tuesday appeal urging people to avoid unnecessary purchases of gold.
According to GTRI, India's gold imports rose by 47.1% to $11.01 billion during April-June 2026, compared with $7.49 billion during the corresponding period last year.
A significant portion of the increase came from the UAE, from where gold imports more than doubled during the quarter. The report said imports from the UAE increased by 124.8% from $1.40 billion in April-June 2025 to $3.14 billion in April-June 2026.
During the same period, gold imports from the rest of the world rose at a comparatively slower rate of 29.3%, from $6.09 billion to $7.87 billion. As a result, the UAE's share in India's total gold imports increased significantly from 18.7% in April-June 2025 to 28.5% in April-June 2026, the report said.
UAE Drives Rise in June Imports
The trend was particularly visible in June 2026. India imported gold worth $649.41 million from the UAE in June, marking an increase of 175.2% compared with $235.94 million in June 2025. In contrast, imports from the rest of the world declined by 17.7%, falling from $1.60 billion to $1.32 billion during the same period.
India's total gold imports in June rose by 7.03% to $1.97 billion from $1.84 billion a year earlier. According to GTRI, this means that the overall increase in India's gold imports during June was driven entirely by higher imports from the UAE.
The UAE's share in India's monthly gold imports consequently jumped from 12.8% in June 2025 to 33% in June 2026.
GTRI Seeks Review of FTA Tariff Concession
The sharp increase in gold imports from the UAE has prompted GTRI to raise concerns over the one-percentage-point tariff concession available under the India-UAE Comprehensive Economic Partnership Agreement (CEPA).
Under the agreement, gold meeting the prescribed rules of origin can enter India at a tariff of 14%, compared with the normal rate of 15%, according to the report.
GTRI Founder Ajay Srivastava said the figures showed that the UAE was not merely another supplier but had emerged as a principal driver of India's rising gold-import bill.
"Imports from the UAE in the first quarter grew more than four times as fast as those from the rest of the world and became a principal driver of India's rising gold-import bill," Ajay Srivastava said. He suggested that the government should review the tariff concession and strengthen the enforcement of rules of origin under the trade agreement.
Concerns Over Trade Diversion
Srivastava pointed out that the UAE is not a major gold-producing country and said the government should examine whether the tariff preference is leading to trade diversion. He said even a one-percentage-point duty advantage could be commercially significant in the high-value and low-margin bullion trade.
"The preference may encourage importers to source or route more gold through the UAE," he said.
GTRI has suggested that the government examine whether gold originating in third countries is being routed through the UAE to benefit from the lower tariff available under the India-UAE trade agreement. The think tank said the government should strictly enforce the agreement's rules of origin to ensure that tariff concessions are available only to products genuinely qualifying under the FTA provisions.
PM's Appeal Brings Gold Imports Into Focus
The GTRI report comes a day after Prime Minister Narendra Modi appealed to people to avoid unnecessary purchases of gold. The sharp increase in imports has renewed concerns about India's dependence on imported gold and its impact on the country's trade balance.
Ajay Srivastava said that asking citizens to reduce unnecessary gold purchases would carry greater credibility if the government simultaneously reviewed import concessions available under trade agreements.
"At a time when the Prime Minister is asking citizens to avoid unnecessary gold purchases, continuing a tariff concession that may be accelerating imports appears inconsistent," he said.
He also suggested a review of concessions available for gold and silver imports from the UAE.
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