CEPA gives boost to India-UAE bilateral jewellery trade
Jul 16, 2022
New Delhi [India], July 16 : The India-UAE Comprehensive Economic Partnership Agreement (CEPA), which came into force on May 1, has given a boost to the bilateral jewellery trade between the two countries, the official data shows.
India's exports to the United Arab Emirates (UAE), which were in negative growth trajectory post the outbreak of COVID-19 to April 2022, have witnessed a rebound since May 2022.
India-UAE Comprehensive Economic Partnership Agreement was signed on 18 February 2022. It came into force on 1st May 2022.
According to data analysed by the Gem & Jewellery Export Promotion Council (GJEPC), India's jewellery exports to UAE slumped by 67.28 per cent year-on-year in 2020-21. It could not be rebounded back to pre-COVID levels to $9.5 billion in 2021-2022 and remained in a negative growth trajectory till April 2022.
Post the signing of CEPA, exports grew by 16.22 per cent to $837.14 million in May-June 2022 as compared to $720.31 million in May-June 2021.
Going by the commodity-wise exports, plain gold jewellery exports which have witnessed a negative growth consistently since the outbreak of the COVID-19 pandemic till April 2022 have witnessed a positive growth by 62 per cent and 59 per cent in May 2022 and June 2022 to $135.27 million and $185.78 million.
Exports of total gold jewellery have registered a positive growth of 52.43 per cent and 36.06 per cent in May and June 2022 after recording negative growth for the last several months after the COVID-19 pandemic.
Gems and Jewellery sector contributes a substantial portion of India's exports to the UAE and is a sector that is expected to benefit significantly from the tariff concessions obtained for Indian products under the India-UAE CEPA.
CEPA is expected to increase the total value of bilateral trade in goods to over $100 billion and trade in services to over $15 billion within five years.
