Trade Pacts Are The Booster Engines For India’s Gem & Jewellery Sector - Mumbai

Trade Pacts Are The Booster Engines For India’s Gem & Jewellery Sector

As the dust of the pandemic settles, we are entering into a completely revitalised business ecosystem. India has set its sights on the tantalising prospect of becoming the world’s primary manufacturing and jewellery sourcing centre. The Government’s major thrust on increasing exports is crucial for the success of its growth strategy.

The strengthened synergies between the ministries and the industry have thrown open new prospects for growth. What’s refreshing is that the Government has held a series of open and frank consultations across the table with every stakeholder before finalising the Free Trade Agreements.

Keeping an eye on the future, the Commerce Ministry, under the exemplary leadership of Shri Piyush Goyal, is making a significant investment of ?200 crore in sprucing up the export-focused manufacturing eco-system of SEEPZ SEZ in Mumbai, as well as ?70 crore towards the Mega Common Facility Centre (CFC) for gems & jewellery.

The Government’s proactive engagement with the gem and jewellery sector to implement policies is helping our sector achieve the export targets. It echoes the long-standing vision and belief of Prime Minister Shri Narendra Modi—that India must emerge as the dominant global leader in gems and jewellery.

The gem & jewellery industry contributed nearly 10% of the country’s target of $400 billion exports in 2021-22 set by the Government of India. Our next target defined by the Government is to reach USD 45.7 billion for FY 2022-23. We have received a tremendous boost from the Ministry of Commerce, with the two landmark trade agreements signed by the Government of India, the Indo-UAE CEPA, the Indo-Australian ECTA. Now, the discussions at an advanced stage with Canada, the UK and EU are ushering new hope for India’s dominance in the world trade in the near future.

The outcome of the India-UAE trade deal which came into effect on 1st May this year has been remarkable. India witnessed a growth of 25% in overall merchandise exports to UAE in the first half of the financial year compared to the same period last year. The CEPA with UAE, I estimate, will likely boost our bilateral trade of bullion, gems and jewellery between India and the UAE to the tune of USD 10 billion annually.

Now, the Government has finalised yet another FTA with Australia which will further cement the already close and strategic relations between the two countries. This will significantly enhance bilateral trade in goods and services, create new employment opportunities, raise living standards, and improve the general welfare of the peoples of the two countries.

For our gem & jewellery sector, this historic India-Australia trade agreement is expected to unlock millions of dollars of additional trade due to the preferential access accorded towards India’s gem and jewellery exports to the island nation. India-Australia has a significant bilateral trade of USD 950 million for gem and jewellery commodities. Key commodities that are exported to Australia are gold jewellery plain and studded and polished diamonds. The main commodities imported from Australia are precious metals i.e. gold and silver bars.

India accounted for around 6% of Australia’s total worldwide imports of gems and jewellery of USD 7.63 billion in 2021. The ECTA will undoubtedly be a major factor in growing India’s share of the pie and be a springboard for future growth.

To know more: https://gjepc.org/solitaire/trade-pacts-are-the-booster-engines-for-indias-gem-jewellery-sector/