Jewellery exports to UAE pick up

Chennai: Gold jewellery exports, which had fallen since the trade was hit by the pandemic, started picking up from May when the government entered a trade agreement with the UAE.

Gold jewellery exports had fallen 58 per cent in FY21 to $5,040 million against $12,039 million in FY20 after Covid and the lockdowns hit the demand as well as trade to the UAE—the largest market for Indian gold jewellery.

In FY22, exports had improved to $9,225 million, but were still 23 per cent lower than in FY20.

After the India-UAE Comprehensive Economic Partnership Agreement (CEPA) came into force from May 1, 2022, gold jewellery exports have started picking up. The abolition of 5 per cent import duty in the UAE has supported jewellery exports.

In July 2022, plain gold jewellery exports grew 16.28 per cent in dollar terms to $325.59 million.

For April-July 2022, provisional gross exports of plain gold jewellery saw a growth of 22.98 per cent to $1,321.68 million. The exports of cut and polished diamonds declined 2.76 per cent between April and July.

“We are seeing good traction in plain gold jewellery exports post the CEPA signed with the UAE. We hope to see the successful conclusion of similar FTAs with the UK and Canada soon, which will further boost exports from India. There is consistent, robust demand for jewellery from key global markets.” said Colin Shah, chairman, GJEPC.