jewelry: the India-Water FTA will be a game-changer | Surah News
“The import of gold from the UAE will be almost duty-free while the export of jewelry to the UAE will be treated the same. As a growing jewelry hub, the city will have a great opportunity,” said said Jayanti Savaliya, chairman of the Surat Jewelery Manufacturers Association (SJMA).Currently, gold tariffs are 7.5% and will be abolished, he said.
Industry insiders explain that Dubai is the global hub for Indian jewelry. “A large amount of jewelry made in India is exported to the world through Dubai. If the 5% VAT is reduced, it will benefit enormously. Furthermore, we hope that the FTA will benefit us by facilitating the customs clearance procedure,” adds Savaliya.
According to Chandu Siroya, Vice Chairman of Dubai Gold and Jewelery Group, the deal will be a very big win-win for India and the UAE. “Business is going to boom and the target of $100 billion bilateral trade will be reached very soon. The jewelry industry will get a big boost and create a lot of jobs in India. Bullion prices will also adjust to the new reduced rate,” explains Siroya.
The Gem and Jewelery Export Promotion Council (GJEPC), India’s top body for the gem and jewelery trade, calls the FTA “historic”. According to GJEPC data, the UAE accounts for 80% of India’s gold jewelry exports and 20% of studded jewelry exports.
“The FTA will pave the way for imports of raw materials at competitive prices into India and provide free access to finished products in the UAE market. The FTA will accelerate India’s target of reaching $52 billion in gemstone and jewelery exports by 2022-23,” said Colin Shah, Chairman of GJEPC.
Shah says the India-UAE FTA will strengthen business ties with one of India’s biggest jewelry buyers. “This bold vision by Honorable Prime Minister Shri Narendra Modi will transform India’s economic relations with the wider Gulf region and beyond, and will also reinvigorate India’s exports of plain gold and studded jewelry to which is, by far, the largest consumer country, in accounting terms, accounting for 26% of gemstone and jewelry exports,” Shah added.