Gem and jewelry exports to the United Arab Emirates (UAE) have shone post the implementation of the Comprehensive Economic Partnership Agreement (CEPA) between the two countries from May 1.
Plain gold jewelry exports increased 72% year-on-year in May to Rs 1,048.40 crore and 68.65% in the following month to Rs 1,451.58 crore.
80% of India’s plain gold jewelry exports and 20% of studded jewelry exports are to the UAE. The government has fixed a target for comprehensive goods export of $45.7 billion for the gem and jewelry sector for 2022-23, a surge of $40 billion from the last fiscal.
Under the CEPA, the UAE will exempt import duty from 90% of Indian products. In the next five years, trade between both countries is expected to reach $100 billion. As the UAE is the leading connection to West Asia and Europe, the agreement will be beneficial to the business community in both countries.
Other than the UAE, there was an immense demand for gems and jewelry in key markets such as the US, Hong Kong, Belgium, and Israel. “Plain gold jewelry exports have been the immediate beneficiary of the India-UAE CEPA. I urge all exporters to maximize their returns and make optimum use of the benefits available through this pact,” stated the chairperson of Gem & Jewellery Export Promotion Council (GJEPC), Mr. Colin Shah.