India-UK CETA to boost Indian gold and diamond jewellery sale
The India-UK Comprehensive Economic and Trade Agreement (CETA) is poised to significantly boost Indian jewellery exports, potentially doubling them in 2-3 years. Reduced import duties in the UK will allow Indian jewellers to better compete. The agreement will also facilitate increased imports of gold, silver, and platinum bars from the UK, benefiting from London Bullion Market Association certification.
India, UK sign deal to boost $34 bn in yearly trade, UK cars and whisky will be cheaper to export The sale of Indian plain gold and diamond jewellery will get a boost due to the India-UK Comprehensive Economic and Trade Agreement (CETA) which has reduced the import duties in UK from 2.5-4% to nil helping India to compete against jewelleries made locally in the UK and other nations such as Malaysia.
While the South Asian community in the UK are always on the lookout for Indian plain gold jewellery, British consumers prefer Indian diamond jewellery as daily wear. The Indian government has estimated Indian export of jewellery will double in 2-3 years due to the CETA.
India currently exports $941 million worth of gems and jewellery to the UK, of which almost $400-million comes from jewellery alone which includes plain gold, studded and silver jewellery. Industry executives said the India-UK CETA will also help India to expand imports of gold, silver and platinum bars from the UK which are in demand since they are certified by London Bullion Market Association ensuring authenticity of the metals.
The CETA will reduce India’s import duties to nil for imports from the UK of gold and silver bars (6% duty now), platinum bars (6.4% duty), cut and polished diamonds (5%) and gold jewellery (20%). Sabyasachi Ray, executive director of Gem & Jewellery Export Promotion Council (GJEPC), said India can now depend on the UK for its bullion supply and shift from other sources.
In fact, GJEPC estimates bilateral trade in gems, jewellery and bullion is expected to double to $7 billion in next two years. Of this, Indian gem and jewellery exports are expected to climb to $2.5 billion, said GJEPC chairman Kirit Bhansali.
The government has said CETA will enhance India’s position in the UK’s luxury and lifestyle segments. Indian jewellery chains such as Titan-owned Tanishq, Malabar Gold & Diamonds and Joy Alukkas already have a presence in the UK.
Bhansali said the benefits of India-UK CETA will reverberate across jewellery clusters from Jaipur to Kolkata, Surat to Coimbatore generating employment for artisans and goldsmiths.
Source: https://economictimes.indiatimes.com/