As trade talks with the Gulf restart, gold is unlikely to shine in the final agreement.

India is not expected to offer tariff concessions on gold in its proposed free trade pact with the six-nation Gulf Cooperation Council (GCC), a government source said. Officials say New Delhi is unlikely to deviate from the approach it followed in its CEPA with Oman. In that agreement, gold and silver bullion were excluded from tariff benefits to protect domestic interests.

The GCC — comprising the United Arab Emirates, Saudi Arabia, Qatar, Kuwait, Oman and Bahrain — recently signed the terms of reference with India to begin negotiations. This move revived formal discussions after nearly two decades. The proposed pact will cover goods, services, investment and trade-related rules.

India’s cautious stance follows its experience with the India-UAE Comprehensive Economic Partnership Agreement, which came into effect in May 2022.

Under that deal, India allowed a quota of gold imports at a concessional 1% customs duty. As a result, imports from the UAE rose sharply from $5.8 billion in FY22 to nearly $16.8 billion in FY25. Later, concerns over the misuse of rules of origin prompted tighter scrutiny.

With bilateral trade between India and the GCC reaching $179 billion in FY25, policymakers appear keen to deepen ties. However, they do not wish to reopen the gold door.

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