The India-UAE Free Trade Agreement (FTA) is likely to be signed soon between the nation. This agreement is expected to increase the exports of gems and jewelry to the United Arab of Emirates.
Due to the pandemic, the export of gems and jewelry was badly hit. From April 2021- to January 2022, UAE witnessed the highest fall of 41.50% among the top 10 gem and jewelry export destinations. This list was followed by Belgium with a 15.81% fall and Hong Kong with a 3.06% fall as compared to April 2019-January 2020.
The Gem & Jewels Export Promotion Council (GJEPC) has recommended the government for the FTA with UAE to seek abolition of import duty of 5% in UAE for the export of silver, platinum, and silver jewelry from India.
GJEPC’s chairman Colin Shah said, “UAE accounts for 80% of India’s plain gold jewelry exports and 20% of studded jewelry export. 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 Arabian Sea.”
Studded gold jewelry is one of the major export destinations for India to UAE.