Proposed to sign a free trade agreement with the UAE to promote the export of jewellery, chemicals and engineering: exporters

The proposed free trade agreement (Free Trade Agreement) and UAE Can lead to increased exports in multiple sectors, including gems and jewelry, Engineering, leather products and Chemicals According to exporters, the agreement will increase the competitiveness of domestic traders. India has begun negotiations on the agreement with the UAE, New Delhi’s third largest trading partner.

According to the free trade agreement, two trading partners reduce or cancel tariffs on the largest number of goods traded between them. In addition, they relax regulations to strengthen service trade and promote investment.

Colin Shah, Chairman of the Gem and Jewelry Export Promotion Council (GJEPC), stated that the proposed free trade agreement with the UAE could increase exports of gems and jewelry products to the UAE, which is really needed at the moment because the industry’s exports to the UAE have fallen sharply Due to the Covid-19 pandemic, it will reach US$2.77 billion in 2020-2021.

“The UAE is one of India’s three major export markets for gems and jewellery products,” he said.

He said that the committee has recommended that the government seek to remove the UAE’s import tariffs on gold, silver and platinum jewelry exports from India; in addition, India will reduce the import tariffs on gold/silver/platinum bars imported from the UAE from 7.5% to 4%.

Sanjay Leekha, Chairman of the Leather Export Council (CLE), said that Indian exporters in the UAE have great potential, and the UAE has a large Indian diaspora.

“We have a lot in common. The export potential of footwear and leather products is huge. Free trade agreements will help us improve our competitiveness,” Leekha added, adding that India’s exports of leather, leather products and footwear to the UAE were US$169.86 in 2019 1 million during -20 years.

He added that considering the huge opportunities in the domestic market and exports, UAE entrepreneurs can be asked to invest in the leather, leather products and footwear industries, or to establish joint ventures/partnerships with Indian companies.

SK Saraf, former chairman of the Federation of Indian Export Organizations (FIEO) and a major exporter, holds a similar view. He said that the UAE is India’s main trading partner and a major hub for re-exports.

“The free trade agreement with the UAE will benefit Indian exporters a lot. This agreement is the most important and it will definitely help domestic exports. The free trade agreement with the UAE is a good idea,” Saraf said, adding The government should add some strong guarantee mechanisms to the agreement so that no one can abuse it.

SC Ralhan, chairman of the Hand Tools Association, said that the engineering department has huge export potential there.

He added that lowering the UAE’s gold import tariffs will help the domestic gem and jewelry industry and reduce the smuggling of gold in the country.

Khalid Khan, vice president of FIEO, said that the UAE is the main export destination of Indian exporters, and the UAE is the gateway to countries such as Iran, Iraq and African countries.

In 2020-21, the bilateral trade volume between India and the UAE is 43.3 billion U.S. dollars. The total export value in 2020-21 will be 16.7 billion U.S. dollars, and the total import value will be 26.7 billion U.S. dollars.