Gold trade: a strategic bilateral asset between India and the United Arab Emirates

India, the second largest consumer of gold, is also home to some of the fastest-growing jewellery brands in the world. Malabar Gold & Diamonds, Joyalukkas, Kalyan Jewellers, and Tanishq have generated billions of dollars by not just serving the lucrative home market but also bolstering an expansive network in the neighbouring UAE, a region that has become a steadfast anchor to their global aspirations.

In FY’23, Malabar Gold & Diamonds, the 6th largest jewellery retailer in the world, saw over 25% of its US$ 5.2 billion turnover come from the UAE. While for Kalyan Jewellers, the Middle East contributed 16% to its approximately US$1.7 billion revenue. The gold and jewellery trade has moulded into a significant bilateral asset between India and UAE. So much so that last year, the two nations signed a first-of-its-kind trade agreement - the Comprehensive Economic Partnership Agreement (CEPA) - in which, among other perks, India can import bullion from the UAE at just 1% duty and export jewellery to the UAE at zero tax, with certain restrictions.