India Urges UAE to Follow Gold Export Quotas Under CEPA: What’s Changing and Why It Matters

India has formally requested the United Arab Emirates (UAE) to adhere to the quota-based system for exporting gold to India under the India–UAE Comprehensive Economic Partnership Agreement (CEPA). This discussion took place during the third meeting of the CEPA Joint Committee held recently in New Delhi.

Why This Issue Emerged

India recently modified the way it allocates gold import quotas at concessional duty rates. Under CEPA, India is permitted to import gold from the UAE at 1% lower duty compared to imports from other countries. Previously, the allocation of these import quotas was conducted through an auction-based mechanism. However, the Indian government shifted to a direct quota-based system to increase transparency and streamline the process.

The UAE expressed concerns about how this new distribution mechanism might affect its gold exporters. In response, India clarified the changes and reassured the UAE that the new system is designed to be fair, efficient, and supportive of mutual trade interests.

India’s Gold Import Scenario

Gold remains India’s second-largest import after petroleum. In April–September this year, India’s precious metal imports from the UAE were valued at $10.65 billion, which is 13% lower than during the same period last year. This decline reflects global market shifts as well as adjustments in India’s own import framework. Meanwhile, India’s petroleum imports from the UAE increased by 10.86%, reaching $13.02 billion.

Key Points Discussed at the CEPA Joint Committee Meeting

1. Review of CEPA Progress

Both nations took stock of the progress made under CEPA so far. Topics included:

• Market access improvements

• Regulatory transparency

• Cooperation in customs, trade facilitation, and standards

2. Ongoing and Future Cooperation

India and the UAE also discussed:

• Anti-dumping concerns

• Exchange of data and information

• Mutual recognition Arrangements (MRAs) for inspection and certification

• Cooperation in pharmaceuticals

• Strengthening digital systems to ease trade

The two countries are working toward a Mutual Recognition Agreement (MRA) between the Bureau of Indian Standards (BIS) and its UAE counterpart to speed up product compliance.

3. Agricultural and Food Products

India emphasized the need for enhanced regulatory cooperation in food and agriculture through:

• Digital Certificates of Origin

• Traceability systems for exports

• Improved communication on sanitary and phytosanitary standards

The discussions involved multiple agencies including the Agricultural and Processed Food Products Export Development Authority (APEDA) and the Ministry of Climate Change and Environment of the UAE.

CEPA’s Trade Impact So Far

Since CEPA came into effect, India–UAE bilateral trade has grown significantly.

• Total trade between both countries reached $85 billion in FY24.

• The goal is to scale this up to $100 billion by 2030.

• India’s exports to the UAE rose by 3.54% in FY24 to $32.63 billion, while imports decreased by 4.51% to $52.37 billion.

• In FY25 (up to June), India’s exports grew by 6.86%, while imports fell by 20.12%.

Why This Matters

The gold quota issue is important because:

• Gold is a major traded commodity between the two nations.

• Clear and predictable import rules help stabilize markets.

• The quota system can help India manage its trade balance and reduce misuse of concessional tariffs.

• Transparent procedures strengthen trust and support long-term trade growth.

Overall, the meeting reaffirmed both nations’ commitment to deepening trade partnerships, resolving procedural issues quickly, and maximizing the benefits of CEPA.