The Comprehensive Economic Partnership Agreement (CEPA) signed between India and the United Arab Emirates (UAE) will give a big boost to the gems and jewellery sector and help create more than one million jobs, Commerce Secretary B V R Subrahmanyam said on Saturday.
Addressing a virtual press conference Subramanyam said, "We are a major importer of gold. India imports 800 tons of gold every year, in this agreement we have given them a tariff quota rate of 200 tonnes. Tariff in perpetuity will be 1 per cent less than tariff charged from rest of the world or on most favoured nation basis."
"India gets zero duty access to UAE market on gems and jewellery. Five per cent duty on Indian jewellery is now zero, the gems and jewellery sector is gung ho. This will lure international jewellery operators who are running their businesses from Singapore and Hong Kong to shift to India," he said.
He further added that UAE becomes a very big entry point for India to enter into the rest of the world, "So I think the jewellery sector is gung ho".
Colin Shah, Chairman, Gems & Jewellery Export Promotion Council (GJEPC), said, "I would like to express my gratitude to our Prime Minister Narendra Modi, as the CEPA with the UAE will help in boosting India's jewellery exports to the Gulf region. This is a significant step in achieving Prime Minister's vision of making India a $5 trillion economy by 2025."
According to GJEPC, "UAE accounts for 80 per cent of India's plain gold jewellery exports and 20 per cent of studded jewellery exports. The CEPA 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.
"The FTA will provide impetus and much-needed push to exports of gem and jewellery products to the Emirates as G & J 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," GJEPC said in a statement.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
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