The Gem and Jewelery Export Promotion Council says that under the Comprehensive Economic Partnership Agreement, the import duty on jewelery exports from India to the UAE has been reduced from 5% to 0%.
The Gem and Jewelery Export Promotion Council says that under the Comprehensive Economic Partnership Agreement, the import duty on jewelery exports from India to the UAE has been reduced from 5% to 0%.
The Gem and Jewelery Export Promotion Council (GJEPC) said that with the signing of the India-UAE Comprehensive Economic Partnership Agreement (CEPA), India’s gems and jewelery sector will achieve annual exports of over $10 billion to the UAE.
As per the treaty, the import duty on jewelery exports from India to UAE has been reduced from 5% to 0%. And India is allowed to import 120 tonnes of gold from UAE at 1% less than the applicable duty in the first year. The quantity will increase to 200 tonnes in five years.
GJEPC President Colin Shah said, “Indo-UAE CEPA will strengthen business ties with one of the largest buyers of Indian jewellery.
Stating that it would transform India’s economic ties across the Gulf region and beyond, he said the move would also boost Indian plain gold and studded jewelery exports to the UAE, which accounts for 26% of gems and jewelery exports. Is part of.
“With 0% import duty on jewellery, we are expecting jewelery exports to UAE to reach a new high of USD 10 billion annually,” Mr Shah said.
He added that the strategic agreement with the UAE will pave the way for import of raw materials into India at a competitive price and provide free access to finished products in the UAE market.
The partnership will enable Indian independent and chain-store retailers to export jewelery directly to consumers based in the UAE. “It will be a game changer for our industry. CEPA will fast-track India’s target of reaching $50 billion in gems and jewelery exports by 2022-23.
Indian gems and jewelery exports to UAE were hit due to the COVID-19 pandemic and fell to US$ 2.7 billion in 2020-2021.
However, for the period April 2021-February 2022, gems and jewelery exports to the UAE have reached US$ 5.1 billion, but lower than US$ 9.26 billion in April 2019- February 2020.
The GJEPC chief said, “CEPA will give new life to the bilateral trade ties and strengthen the existing ties.”