In a major boost to gems and jewellery exports, India’s jewellery will get duty-free access in the UAE market after the two countries signed the Comprehensive Economic Partnership Agreement (CEPA) that is likely to come into effect from May 1.
In return, India will charge one per cent less import duty on gold import of up to 200 tonnes per year from the Gulf nation, a move that could see more gold pouring into India from the UAE and help satiate the appetite of the world’s second-largest consumer, whose demand in 2022 is likely to top 850 tonnes.
India imports about 800 tonnes of gold every year.
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“In this particular agreement, we have given UAE a tariff-rate quota of 200 tonnes where the import duty in perpetuity will be 1% less than whatever is the tariff charged for the rest of the world. Therefore, the UAE has a 1% price advantage in gold bars. That tariff difference means those 200 tonnes will be diverted to the UAE,” Commerce Secretary BVR Subrahmanyam told reporters here Saturday.
He said that India will get zero duty access for its jewellery in the UAE market. This is a major advantage for gems and jewellery exporters.
Earlier, India paid a 5% duty on jewellery.
India is also likely to gain in sectors other than gold and jewellery after the trade pact was signed, the secretary said.
He further said at least 10 lakh job opportunities will be created after signing the trade pact.
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Read More:India to get duty-free access to UAE’s gems, jewellery market
2022-02-19 11:04:34
