New Delhi [India], February 17 (ANI): The proposed Free Trade Agreement (FTA) between India and the United Arab Emirates (UAE) is likely to boost India’s jewellery exports to the Gulf nation to $10 billion by 2023, industry body has said.
The imminent Foreign Trade Agreement (FTA) with UAE would help the industry to 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 in a statement.
For the FTA with UAE, GJEPC has recommended to the Government to seek abolition of import duty of 5 per cent in UAE on the exports of gold, silver, and platinum jewellery from India.
Colin Shah, Chairman, GJEPC, said, "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.""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," Shah said.
Shah said the FTA will provide impetus and much-needed push to exports of gem and jewellery products to the Emirates as gem and jewellery exports to UAE declined significantly to $1.18 billion in 2020-2021 due to the COVID-19 pandemic situation.
"With proposed nil duty, we are confident that exports of plain gold jewellery and gold studded jewellery from India to UAE would boost to $10 billion (Rs 74000 crore) in 2023," he said. UAE is also India’s one of the major export destinations for studded gold jewellery.
In the last few years, exports of studded gold jewellery declined from $1.04 billion in FY2017 to US$400 million in 2020-2021. GJEPC is hopeful that studded gold jewellery exports from India to UAE could revert to their earlier average level of $800 million if the duty is withdrawn. (ANI)