According to the Comprehensive Economic Partnership Agreement, the import duty on jewelry exports from India to the UAE has been reduced from 5% to 0%, Gem & Jewelery Export Promotion Council says.
According to the Comprehensive Economic Partnership Agreement, the import duty on jewelry exports from India to the UAE has been reduced from 5% to 0%, Gem & Jewelery Export Promotion Council says.
The Gem & Jewelery Export Promotion Council (GJEPC) said that with the signing of the Comprehensive Economic Partnership Agreement (CEPA) between India and the United Arab Emirates, India’s gem and jewelery sector has increased annual exports to the United Arab Emirates in excess of US$10 billion Emirates would achieve.
Under the deal, the import duty on jewelry exports from India to the UAE has been reduced from 5% to 0%. And India is allowed to import up to 120 tons of gold from the United Arab Emirates at a tariff 1% less than the first-year tariff. The volume will increase to 200 tons in five years.
GJEPC Chairman Colin Shah said, “The Indo-UAE CEPA will strengthen business ties with one of the largest buyers of Indian jewelry.”
Explaining that this would transform India’s economic ties with the entire Gulf region and beyond, he said the move will also revitalize Indian exports of pure gold and studded jewelry to the UAE, which accounted for 26% of gemstone and jewelry exports would.
“With a 0% import tariff on jewelry, we expect jewelry exports to the UAE to reach new heights of US$10 billion annually,” Mr Shah said.
The strategic pact with the UAE would pave the way for the import of raw materials to India at competitive prices and allow free access for finished products to the UAE market, he added.
The partnership would also allow independent Indian retailers and retail chains to export jewelry directly to consumers in the UAE. “This will be a game changer for our industry. CEPA will accelerate India’s goal of reaching $50 billion in gems and jewelery exports by 2022-23,” he added.
Indian gems and jewelry exports to UAE suffered from the COVID-19 pandemic, plummeting to US$2.7 billion between 2020 and 2021.
However, for the period April 2021-February 2022, gemstones and jewelry exports to the UAE have recovered to US$5.1 billion but have decreased compared to US$9.26 billion in April 2019-February 2020.
“CEPA will breathe new life into bilateral trade relations and strengthen existing ties,” said the GJEPC chief.
