GJC EXPLAINS CEPA BENEFITS FOR JEWELLERY EXPORTS TO THE UAE
30th May 2024
GJC NextGen organised the first of its kind one-day seminar to educate Indian jewellers about the benefits in jewellery exports under the Comprehensive Economic Partnership Agreement (CEPA) with the UAE. The seminar organised on Wednesday, 29th May 2024, at Hyatt Regency Dubai, and was attended by over 100+ jewellers from across India and prominent importers from the UAE
India signed an exclusive CEPA agreement with the UAE in March 2022 to boost gems and jewellery exports at lower duty. As per the agreement, the import duty on jewellery exports to UAE from India has been reduced from 5 per cent to ‘nil’. There were four panel discussions organised during the seminar where panellists elaborated benefits of India’s gems and jewellery exports to the UAE, and the potential forward.
Mr Nilesh Shobhawat, GJC NextGen Convener, delivered the welcome address and formally inaugurated the seminar. Separate sessions were dedicated on to topics including international financing, changing security and business landscape, and how to set up businesses in the UAE, among others.
The bilateral pact targets India’s gems and jewellery sector to achieve annual exports of more than US$10 billion to the UAE. Additionally, India is allowed to import from UAE up to 120 tonnes of gold at 1 per cent import duty. The volume of India’s gold imports from the UAE is expected to reach 200 tonnes in five years.
Mr Saiyam Mehra, Chairman of All India Gem & Jewellery Domestic Council, stated, “The Indian jewellery industry stands on the threshold of compounded growth which will be driven by factors such as lower import duty in the UAE. India’s gems and jewellery industry is known for low labour cost, better quality, unique craftsmanship, and timely delivery of the contracted goods. To support the move, the policy decisions in the UAE have been favourable for Indian exporters, which accelerated under the CEPA pact. It offers a great opportunity for Indian jewellers to export value added products to the UAE at lower duty.”
Mr Rajesh Rokde, Vice Chairman of GJC said, “precious Indian ornaments are high in demand in the UAE markets due to unique designs, lustrous look, and combinations of cultural and modern design styles. GJC has more than 3000 jewellers as our members, 250 jewellery associations, and more than 65,000 partners engaged with us directly or indirectly. GJC works 360 degrees for the entire jewellery value chain from bullion dealers to retailers. Gems and jewellery exports to the UAE help Indian jewellery fraternity to access.”
Jewellers emphasized on leveraging the power of technology to drive efficiency, transparency, and resilience across the value chain. Whether the doctrine of AI for predictive analysis or harnessing fintech solutions for supply chain finance, the opportunities are boundless.
Highlighting the potential of business expansion through gems and jewellery exports through the UAE, Mr Tawhid Abdullah – CEO, Jawhara Jewellery LLC, Dubai, elaborated, “India’s enhanced jewellery exports to the UAE can strengthen bilateral ties between the two naturally aligned countries. The UAE can be proved as a gateway for Indian jewellers to access the Middle East and North America (MENA) regions. Also, the UAE can help Indian jewellery manufacturers to reach out to the European markets for higher realization.”
About GJC:
All India Gem and Jewellery Domestic Council is a national trade council established with the objective to address the industry, its functioning, and its cause with a 360° approach to promote and progress its growth, while protecting the industry’s interests. As a self-regulated trade body, GJC, since the last 18 years, has been serving as a bridge between the Government and the trade as well as undertaking various initiatives on behalf of and for the industry.
