The Gems and Jewellery Export Promotion Council (GJEPC), as the apex body of trade in India, is expecting that 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.

For the FTA with UAE, GJEPC has recommended to the Government to seek abolition of import duty of 5% (MFN) in UAE on the exports of gold, silver, and platinum jewellery from India.

Colin Shah, Chairman, GJEPC, said, “UAE accounts for 80% of India’s plain gold jewellery exports and 20% 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% 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 gem and jewellery exports to UAE declined significantly to US$ 1.18 billion in 2020-2021 due to the Covid-19 pandemic. With proposed nil duty, we are confident that exports of plain gold jewellery and gold studded jewellery from India to UAE would boost to US$ 10 billion (INR 74000 Crores) in 2023.”

For India, UAE is one of major export destinations for studded gold jewellery. In the last few years, exports of studded gold jewellery declined from US$1.04 billion in FY2017 to US$400 million in 2020-2021. GJEPC is hopeful that studded gold jewellery exports from India to UAE could revert to its earlier average level of US$ 800 million if the duty is withdrawn.