India's imports of gems and jewellery from the United Arab Emirates (UAE) have seen significant growth, totaling $24.08 billion in the period from April to February 2026. This increase, however, is in line with the overall bilateral trade expansion, which surpassed $100 billion in the fiscal year 2024-25. The Comprehensive Economic Partnership Agreement (CEPA), established in 2022, introduced a Tariff Rate Quota (TRQ) mechanism that allows gold imports at a concessional rate of 1% below the prevailing customs duty. Despite the potential for increased gold imports, actual utilization of this quota has been described as modest, reflecting a broader diversification in trade rather than a heavy reliance on gold. The annual quota, which started at 120 tonnes, is expected to rise to 200 tonnes by 2027, accounting for nearly one-fourth of India's yearly gold imports. With the new Most-Favoured-Nation (MFN) tariff structure increasing effective duties to 15%, gold imported under the UAE quota will enter at 14%, which may encourage more global bullion to be routed through Dubai, despite the UAE not being a gold or silver producer.