Key facts
- FY26 gold import quota licences extended to September 30
- Licences issued under India-UAE CEPA trade agreement
- CEPA gold imports attract concessional customs duty
- Benefits bullion traders and gems and jewellery exporters
The Indian government has extended the validity of FY26 gold import quota licences under the India-UAE Comprehensive Economic Partnership Agreement to September 30, the Economic Times reported, providing relief to bullion traders and jewellery manufacturers who had been racing to utilise their allotted import entitlements.
The India-UAE CEPA, which came into force in 2022, includes preferential duty treatment for gold imports from the UAE — a provision that has been a significant draw for India's gems and jewellery industry, one of the country's largest export earners. Licences under this quota allow importers to bring in gold at reduced customs duty, giving them a meaningful cost advantage over standard import channels.
The extension to September 30 addresses a practical bottleneck: quota holders who had been unable to complete their imports within the original timeframe — due to logistics, market conditions, or procedural delays — now have additional months to do so. Without the extension, unused quotas would have lapsed, effectively wasting the concession and leaving importers to source gold through costlier channels.
For India's jewellery export sector, which competes closely with manufacturers in countries like Thailand and China, input cost control is critical. The extension is expected to be welcomed by industry bodies that had reportedly been lobbying for more flexibility in quota utilisation timelines. It also reflects the government's intent to keep the India-UAE CEPA commercially active and attractive for both sides.