The Indian government has set aside 180 tonnes of gold imports from the United Arab Emirates at a reduced tax under the CEPA for the fiscal year 2025-26. This concessional tariff plan allows eligible importers to bring in gold for a 5% import fee. The move sparked a boom of interest from traders, with the Directorate General of Foreign Trade receiving 2,960 applications—25 times the allotted limit and a 253% increase over the previous year.
The extremely high volume of applications, however, resulted in significant rejections. According to the Indian Bullion and Jewellers Association, over 1,400 applications were denied. National secretary Surendra Mehta voiced concern over the DGFT’s decision-making process. The individual claimed that despite a public notification in June 2023, the agency still required an average turnover of above ₹25 crore for the previous three years.
Mehta further stated that just one application per organisation was accepted, with preference given to applicants who used 80% of their assigned CEPA quota in FY25. Commercial banks can import gold directly as a nominated agency, are exempt from the quota system. The plan, which began in 2022, continues to attract new members, including those with no prior gold trading expertise.
