India’s gold import bill is rising sharply, but the surge has an unusual geographic pattern. Imports from the United Arab Emirates have jumped at a much faster pace than shipments from the rest of the world, putting the spotlight on the preferential tariff available to gold under the India-UAE free trade agreement (FTA).
According to the Global Trade Research Initiative (GTRI) and its founder Ajay Srivastava, the sharp increase in UAE shipments warrants a review of the tariff concession, particularly as Prime Minister Narendra Modi has urged citizens to avoid unnecessary gold purchases.
