Free trade agreement between India and UAE will give big relief to Indian jewelers, there will be a boom in jewelery exports

India imported about 70 tonnes of gold from UAE in 2020-21. Under the free trade agreement, India will get duty free access to the UAE market.

India will get access to duty free UAE market.

Commerce Secretary BVR Subrahmanyam said on Saturday that India and United Arab Emirates ,India- UAE trade deal) occurred between Trade Agreements ,Free Trade Agreement) will provide duty-free access to the domestic jewelery sector to the UAE market, giving a huge boost to exports. On the other hand, the Gulf country will get more access to the gold market here, because India will give duty exemption on gold imports up to 200 tonnes. India imported about 70 tonnes of gold from UAE in 2020-21. He said, “We are a major importer of gold. India imports about 800 tonnes of gold every year. In this particular agreement, we have given them (UAE) a TRQ (tariff rate quota) of 200 tonnes, where the duty will always be one per cent less than whatever import duty will be imposed for the rest of the world,” Subramaniam told reporters. “In this way the UAE has got one per cent value advantage on gold.”

He said the biggest advantage for India is that there will be “zero duty access” to the UAE market for domestic jewellery. And the jewelery sector will benefit. The signing of a free trade agreement between India and the UAE will help increase bilateral trade to $100 billion in the next five years and create millions of jobs.

Free trade agreement may be implemented from May

Commerce Minister Piyush Goyal on Friday said after the signing of the Free Trade Agreement between India and the UAE that the Comprehensive Economic Partnership Agreement may come into effect in May and from day one, the Indian Exports to the UAE will be opened for about 90 percent of the products of interest. The trade agreement was signed during the online summit between Prime Minister Narendra Modi and the Crown Prince of Abu Dhabi, Sheikh Mohamed bin Zayed Al Nahyan. The agreement was signed by Goyal from the Indian side and Abdullah bin Touq Al Marri, UAE Minister of Economy. The two countries also released a framework to further strengthen ties in various fields.

Trade estimated to reach $100 billion in next five years

Companies in India and UAE will get significant benefits from the free trade agreement. This includes better market access and lower fee rates. With this FTA, the bilateral trade of both the countries is expected to increase from the current $ 60 billion to $100 billion in the next five years. It is noteworthy that India and UAE started formal talks for a trade deal in September last year. The total 881-page settlement was completed in a record 88 days.

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