The India-UAE Free Trade Agreement is expected to help the industry take a bigger leap in exports of plain gold and gold studded jewellery which was hit badly during the pandemic, the Gem and Jewellery Export Promotion Council (GJEPC) said on Wednesday.
The Indian gem and jewellery export sector has shown quick recovery post the pandemic.
Exports during April 2021-January 2022 rose by 12.28 per cent to worth Rs 2.4 lakh crore, as compared to Rs 2.14 lakh crore during the same period in the corresponding year, the council said in a statement.
For the FTA with UAE, the council has recommended the Centre for abolition of import duty of 5 per cent on the exports of gold, silver, and platinum jewellery from India, the statement added.
“UAE accounts for 80 per cent of India’s plain gold jewellery exports and 20 per cent of studded jewellery exports. The FTA between India and UAE has come at an opportune time when both countries are looking to rebound from the Covid-19 setback and recalibrate and realign their common business interests, including gold and diamonds,” said Colin Shah, Chairman of the council.”
UAE is a gateway to the entire Middle East region and the proposed abolition of 5 per cent import duty in UAE would lead to increased prosperity on both sides of the Arabian Sea.
“The FTA will provide impetus and much needed push to exports of gem and jewellery products to the Emirates as the exports to UAE declined significantly to $1.18 billion in 2020-2021 due to the Covid-19 pandemic situation.
“With proposed nil duty, the council is confident that exports of plain gold jewellery and gold studded jewellery from India to UAE would boost to $10 billion in 2023, Shah added.
According to reports, the bilateral agreement is likely to be signed on February 18, where both the countries could give duty-free access to a number of products from different sectors.