Gem and jewellery exports to the United Arab Emirates (UAE) have increased since the implementation of the Comprehensive Economic Partnership Agreement (CEPA) between the two countries from May 1.
Plain gold jewellery exports surged 72% year-on-year in May to ₹1,048.40 crore and 68.65% in June to ₹1,451.58 crore.
The UAE accounts for 80% of India's plain gold jewellery exports and 20% of studded jewellery exports. The government has set an overall merchandise exports target of $45.7 billion for the gem and jewellery sector for 2022-23, up from $40 billion last fiscal.
Under the CEPA, the UAE will exempt 90% of Indian products from import duty. Bilateral trade between the two countries is expected to reach $ 100 billion within five years. As the UAE is the main gateway to West Asia and Europe, the agreement will benefit the business community in both countries.
Total gem and jewellery exports to the UAE in the June quarter grew 10.09% to ₹9,802 crore, from ₹8,904 crore a year ago.
Apart from the UAE, demand for gems and jewellery remained strong in key markets such as the US (₹28,975 crore), Hong Kong (₹17,246 crore), Belgium (₹4,646 crore) and Israel (₹2,854 crore). "Plain gold jewellery exports have been the immediate beneficiary of the India-UAE CEPA. I urge all exporters to maximise their returns and make optimum use of the benefits available through this pact," said Colin Shah, chairman, Gem & Jewellery Export Promotion Council (GJEPC).
In June, India's overall gross exports of gems and jewellery grew 21.41% year-on-year to ₹25,295.690 crore.
Overall gross exports of gems and jewellery grew 14.6% year-on-year in the April-June period to ₹7,7049.76 crore.
In June 2022, total gross exports of gold jewellery (plain and studded) grew 35.25% year-on-year to ₹5,641.28 crore.
Source Name:-Economic Times