The Gem & Jewellery Export Promotion Council (GJEPC) has applauded the historic India-UAE Comprehensive Economic Partnership Agreement (CEPA), as the sector will be benefited the most by this strategic pact.

UAE has done away with Import duty on jewellery imported from India. Earlier, it used to be 5%. Imports into India from UAE up to 120 tonnes of gold will be allowed at 1% duty less than the applicable duty in the first year. The quantity of gold thus allowed will increase to 200 tonnes in five years.

Talking about the India-UAE CEPA, Colin Shah, Chairman, GJEPC, said, “The Indo-UAE CEPA will strengthen business ties with one of the biggest buyers of Indian jewellery. This bold vision of Hon'ble Prime Minister Shri Narendra Modi will transform India’s economic relations with the entire Gulf region and beyond, and will also reinvigorate Indian plain gold and studded jewellery exports to what is, by far, the largest consuming nation, accounting for 26% of gem & jewellery exports. With 0% import duty on jewellery, we are expecting jewellery exports to UAE will move to new heights (UAD 10 billion annually) and take us forward towards creating an Atmanirbhar Bharat for our sector.

“On behalf of the entire Indian jewellery industry, I would like to express my gratitude to our Hon’ble Prime Minster Shri Narendra Modi, for this remarkable strategic pact with UAE. This will pave the way for raw material import at a competitive price in India, and provide free access for finished products to the UAE market. We have been closely working with the Ministry of Commerce & Industry and I would like to thank our Hon’ble Union Minister Piyush Goyal for accepting our recommendations. The partnership will 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.”

Indian gem and jewellery exports to UAE suffered due to the pandemic and plunged to $ 2.7 billion in 2020-2021. However, for the period of April 2021-Feb 2022, G&J exports to UAE have recovered. but there has been a decline of 45% to $ 5.1 billion as compared to $ 9.26 billion in April 2019-Feb 2020. CEPA is expected to give a fresh lease of life to bilateral trade relations and solidify existing ties.