India’s jewellery exports to the United Arab Emirates are poised to reach US$10 billion annually with the removal of import duties as stipulated in a new bilateral deal.

Under the India-UAE Comprehensive Economic Partnership Agreement (CEPA), import duties on jewellery exported to the UAE from India will be slashed to zero from 5 per cent. Import into India from the UAE of up to 120 tonnes of gold meanwhile will be levied 1 per cent duty in the first year. The amount of imported gold will increase to 200 tonnes in five years.   

Colin Shah, chairman of the Gem & Jewellery Export Promotion Council (GJEPC) said, “The CEPA will strengthen business ties with one of the biggest buyers of Indian jewellery. This will also reinvigorate Indian plain gold and studded jewellery exports to the largest consuming nation, accounting for 26 per cent of gem and jewellery exports.” 

The agreement will fast-track India’s goal of reaching US$50 billion in jewellery exports by 2022 and 2023, GJEPC added.