Gold jewellery export: UPSC Daily Important Topic | 2 September 2022

Gold jewellery export

India’s gold jewellery exports to the United Arab Emirates (UAE) rose by a sharp 42% in two months of a free trade pact coming into effect in May 2022.

Overall exports to the UAE in May-June, 2022 touched USD 5.4 billion, a 17% growth from a year ago.

What benefited the Growth of Jewellery Export?

✓Indian exporters were facing tough competition in gold jewellery from countries like Turkey, and Indian exports were showing a decline before the FTA.

✓The free trade pact came into effect in May 2022 with its offer of duty-free access on jewellery to the Gulf nation. This removal of duties has benefited exports.

✓India got zero duty access to the UAE market for jewellery exports, which attracted 5% duty earlier, potentially facilitating entry of Indian products in the North Africa, West Asia and Central Asia markets.

✓India in turn allowed 1% duty concession on gold imports from the UAE for up to 200 tonnes of shipments under the comprehensive economic partnership agreement.