Agreement will propel India’s jewellery exports to UAE to over $10 billion annually, says council
As per the Comprehensive Economic Partnership Agreement, the import duty on Jewellery exports to UAE from India has been reduced from 5% to 0%, says Gem & Jewellery Export Promotion Council.
As per the Comprehensive Economic Partnership Agreement, the import duty on Jewellery exports to UAE from India has been reduced from 5% to 0%, says Gem & Jewellery Export Promotion Council.
The Gem & Jewellery Export Promotion Council (GJEPC) said that with the signing of India-UAE Comprehensive Economic Partnership Agreement (CEPA), India’s gem & jewellery sector would achieve annual exports of more than $10 billion to UAE.
As per the pact, the import duty on Jewellery exports to UAE from India has been reduced from 5% to 0%. And India is allowed to import from UAE up to 120 tonnes of gold at 1% duty less than the applicable duty in the first year. The volume will increase to 200 tonnes in five years.
GJEPC Chairman Colin Shah said, “The Indo-UAE CEPA will strengthen business ties with one of the biggest buyers of Indian jewellery.”
Stating that it would transform India’s economic relations with the entire Gulf region and beyond, he said the move would also reinvigorate Indian plain gold and studded jewellery exports to UAE which accounted for 26% of gem & jewellery exports.
“With 0% import duty on jewellery, we are expecting jewellery exports to UAE will move to new heights of US$ 10 billion annually,” Mr. Shah said.
The strategic pact with UAE would pave the way for raw material import at competitive price into India and provide free access for finished products to UAE market, he added.
The partnership would also enable Indian independent and chain-store retailers to export jewellery directly to UAE-based consumers. “This will be a game changer for our industry. The CEPA will fast-track India’s goal of reaching $50 billion in exports of gems and jewellery by 2022-23,” he added.
Indian gem and jewellery exports to UAE suffered due to the COVID-19 pandemic and plunged to US$ 2.7 billion in 2020-2021.
However, for the period of April 2021 -February 2022, gem & jewellery exports to UAE have recovered to US$ 5.1 billion but is down as compared to US$ 9.26 billion in April 2019- February 2020.
“CEPA will give a fresh lease of life to bilateral trade relations and solidify existing ties,” the GJEPC chief said.
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