{"id":30067,"date":"2025-02-20T17:28:30","date_gmt":"2025-02-20T11:58:30","guid":{"rendered":"https:\/\/gjepc.org\/solitaire\/?p=30067"},"modified":"2025-03-05T14:35:18","modified_gmt":"2025-03-05T09:05:18","slug":"cepa-turns-3-powers-the-india-uae-trade-surge","status":"publish","type":"post","link":"https:\/\/gjepc.org\/solitaire\/cepa-turns-3-powers-the-india-uae-trade-surge\/","title":{"rendered":"CEPA Turns 3: Powers the India-UAE Trade Surge"},"content":{"rendered":"

Three years ago, India and the UAE inked a landmark trade deal: the Comprehensive Economic Partnership Agreement (CEPA). GJEPC explores how CEPA has transformed bilateral trade, boosting exports, reshaping market dynamics, and unlocking significant opportunities for Indian jewellers.<\/em><\/p>\n

The Comprehensive Economic Partnership Agreement (CEPA) between India and the UAE, formalised on 18th February 2022, has profoundly strengthened economic ties between the two nations. As we commemorate its third anniversary, it is evident that CEPA has significantly enhanced trade opportunities, particularly for India’s gem and jewellery industry.<\/p>\n

Trade Growth Post-CEPA<\/strong><\/p>\n

Since CEPA\u2019s implementation, trade between India and the UAE has witnessed remarkable growth. The bilateral gem and jewellery trade surged from US$ 20.88 billion in FY2022 to US$ 28.15 billion in FY2024, reflecting a robust 35% increase. India\u2019s gem and jewellery exports to the UAE also soared by over 60%, from US$ 4.95 billion in FY2022 to US$ 8.04 billion in FY2024.<\/p>\n

\"\"
Source: GJEPC Research Division based on DGCIS Data<\/figcaption><\/figure>\n

Notably, UAE\u2019s share in India\u2019s total exports rose from 13% in FY2022 to 25% in FY2024, overtaking Hong Kong as India\u2019s second-largest export market. This underscores the transformative impact of CEPA on India\u2019s trade dynamics.<\/p>\n

Kirit Bhansali, Chairman, GJEPC, said, \u201cThe India-UAE CEPA has propelled our gem and jewellery exports to new heights, growing by over 60% from US$ 4.95 billion in FY2022 to US$ 8.04 billion in FY2024. The UAE now accounts for nearly a quarter of India\u2019s total gem and jewellery exports, surpassing Hong Kong. The duty-free advantage has unlocked immense opportunities, particularly in plain gold jewellery, which saw a 127% surge. As we celebrate three years of CEPA, we remain committed to strengthening this vital partnership and exploring new avenues for growth.\u201d<\/p>\n

Country-wise India\u2019s Gem & Jewellery Exports <\/strong><\/p>\n\n\n\n\n\n\n\n\n\n\n\n
Country<\/strong><\/td>\n2021-2022<\/strong><\/td>\n% Share<\/strong><\/td>\n2022-2023<\/strong><\/td>\n% Share<\/strong><\/td>\n2023-2024<\/strong><\/td>\n% Share<\/strong><\/td>\n<\/tr>\n
US$ Mn<\/strong><\/td>\nUS$ Mn<\/strong><\/td>\nUS$ Mn<\/strong><\/td>\n<\/tr>\n
USA<\/strong><\/td>\n14,667.48<\/td>\n37.35<\/td>\n12,586.25<\/td>\n33.02<\/td>\n9,948.50<\/td>\n30.28<\/td>\n<\/tr>\n
UAE<\/strong><\/td>\n4,953.11<\/strong><\/td>\n12.61<\/strong><\/td>\n5,772.47<\/strong><\/td>\n15.15<\/strong><\/td>\n8,043.08<\/strong><\/td>\n24.48<\/strong><\/td>\n<\/tr>\n
HONG KONG<\/strong><\/td>\n9,379.20<\/td>\n23.88<\/td>\n8,736.38<\/td>\n22.92<\/td>\n6,727.40<\/td>\n20.48<\/td>\n<\/tr>\n
BELGIUM<\/strong><\/td>\n2,740.37<\/td>\n6.98<\/td>\n2,696.17<\/td>\n7.07<\/td>\n2,100.08<\/td>\n6.39<\/td>\n<\/tr>\n
ISRAEL<\/strong><\/td>\n1,474.12<\/td>\n3.75<\/td>\n1,279.76<\/td>\n3.36<\/td>\n792.17<\/td>\n2.41<\/td>\n<\/tr>\n
Others <\/strong><\/td>\n6054.17<\/td>\n15.41<\/td>\n7041.28<\/td>\n18.48<\/td>\n5241.68<\/td>\n15.96<\/td>\n<\/tr>\n
Total <\/strong><\/td>\n39,268.45<\/td>\n100.00<\/td>\n38,112.31<\/td>\n100.00<\/td>\n32,852.91<\/td>\n100.00<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

Source: GJEPC Research Division based on DGCIS<\/p>\n

\"\"
The flagging off ceremony of the first consignment under CEPA in May 2022 was presided over by the then Commerce Secretary Shri. B.V.R. Subrahmanyam in the presence of Director General of Foreign Trade, Shri Santosh Kumar Sarangi and other senior officials from the Department of Commerce.<\/figcaption><\/figure>\n

Key Commodity Trends<\/strong><\/p>\n

One of the most significant benefits of CEPA has been the duty-free access for all gem and jewellery products, including gold, silver, and platinum jewellery, along with polished diamonds and gemstones.<\/p>\n

This development has motivated Indian exporters to increase their supply of various gem and jewellery items to the UAE, capitalising on the enhanced market access provided by the agreement.<\/p>\n

This policy shift has led to substantial growth in key export categories:<\/p>\n

    \n
  • Plain Gold Jewellery<\/strong>: Exports surged by 127.62%, reaching US$ 4,240 million in FY2024.<\/li>\n
  • Studded Gold Jewellery<\/strong>: Increased by over 50%, from US$ 917 million in FY2022 to US$ 1,382 million in FY2024.<\/li>\n
  • Worked Lab-Grown Diamonds<\/strong>: Witnessed a 58.16% growth, reaching US$ 172 million in FY2024.<\/li>\n
  • Platinum Jewellery<\/strong>: Recorded a staggering 820.87% increase, reaching US$ 23 million.<\/li>\n
  • Coloured Gemstones<\/strong>: Grew by 17.19% to US$ 9.34 million.<\/li>\n<\/ul>\n

    \"\"<\/p>\n

    \"\"
    Source: GJEPC Research Division based on DGCIS<\/figcaption><\/figure>\n
    \"\"
    Source: GJEPC Research Division based on DGCIS<\/figcaption><\/figure>\n

    India\u2019s Gem & Jewellery exports to UAE (FY2022 and FY2023)<\/strong><\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
    Commodity Category<\/strong><\/td>\n2021-22<\/strong><\/td>\n2023-2024<\/strong><\/td>\n% Growth<\/strong><\/td>\n<\/tr>\n
    US$ Mn<\/strong><\/td>\nUS$ Mn<\/strong><\/td>\n<\/tr>\n
    Cut & Polished Diamonds<\/td>\n1647.46<\/td>\n1,587.18<\/td>\n-3.66<\/td>\n<\/tr>\n
    Worked Lab Grown Diamonds<\/td>\n109.01<\/td>\n172.41<\/td>\n58.16<\/td>\n<\/tr>\n
    Plain Gold Jewellery<\/td>\n1862.77<\/td>\n4,240.09<\/td>\n127.62<\/td>\n<\/tr>\n
    Studded Gold Jewellery<\/td>\n917.48<\/td>\n1381.98<\/td>\n50.63<\/td>\n<\/tr>\n
    Total Gold Jewellery<\/strong><\/td>\n2780.25<\/strong><\/td>\n5,622.07<\/strong><\/td>\n102.21<\/strong><\/td>\n<\/tr>\n
    Silver Jewellery<\/td>\n11.55<\/td>\n8.65<\/td>\n-25.11<\/td>\n<\/tr>\n
    Coloured Gemstones, worked<\/td>\n7.97<\/td>\n9.34<\/td>\n17.19<\/td>\n<\/tr>\n
    Platinum Jewellery<\/td>\n2.54<\/td>\n23.39<\/td>\n820.87<\/td>\n<\/tr>\n
    Imitation Jewellery<\/td>\n14.54<\/td>\n6.07<\/td>\n-58.25<\/td>\n<\/tr>\n
    Others<\/td>\n379.79<\/td>\n613.97<\/td>\n61.66<\/td>\n<\/tr>\n
    Total<\/strong><\/td>\n4953.11<\/td>\n8043.08<\/td>\n62.38<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

    Source: GJEPC Research Division based on DGCIS<\/p>\n

    While polished diamond exports saw a slight decline in FY2024 due to global demand fluctuations, lab-grown diamond exports recorded steady growth.<\/p>\n

    Rising Gold Imports from the UAE<\/strong><\/p>\n

    CEPA has also facilitated a sharp rise in India\u2019s gold bar imports from the UAE. Under the Tariff Rate Quota (TRQ) mechanism, India levies a preferential duty of just 1% on UAE-origin gold. As a result, India\u2019s imports of unwrought gold from the UAE surged by 126.76% in FY2024, reaching US$7.64 billion. This demonstrates CEPA\u2019s role in boosting gold trade efficiency between both nations.<\/p>\n

    Import of Gold Bar <\/strong>(HS Code-7108) from UAE in value terms (US$ Mn)<\/strong><\/p>\n\n\n\n\n\n\n\n\n\n\n\n
    Gold Bar Imports<\/strong><\/td>\nImports from World<\/strong><\/td>\n% Growth<\/strong><\/td>\nImports from UAE<\/strong><\/td>\n% Growth<\/strong><\/td>\n<\/td>\n<\/tr>\n
    <\/td>\n<\/td>\n<\/tr>\n
    Qty in Tons<\/strong><\/td>\nUS$ MN<\/strong><\/td>\nUS$ MN<\/strong><\/td>\nQty in Tons<\/strong><\/td>\nUS$ MN<\/strong><\/td>\nUS$ MN<\/strong><\/td>\n<\/td>\n<\/td>\n<\/tr>\n
    2020-2021<\/strong><\/td>\n651.24<\/td>\n34603.93<\/td>\n<\/td>\n70.58<\/td>\n4194.89<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
    2021-2022<\/strong><\/td>\n879.01<\/td>\n46165.49<\/td>\n34.97<\/td>\n99.76<\/td>\n5839.46<\/td>\n41.34<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
    2022-2023<\/strong><\/td>\n678.3<\/td>\n35016.09<\/td>\n-22.83<\/td>\n52.81<\/td>\n3089.09<\/td>\n-47.06<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
    2023-2024<\/strong><\/td>\n795.25<\/td>\n45542.07<\/td>\n17.24<\/td>\n119.75<\/td>\n7647.17<\/td>\n126.76<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
    April 23 – Nov 23<\/strong><\/td>\n567.66<\/td>\n32,925.16<\/td>\n<\/td>\n74.68<\/td>\n4,679.18<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
    April 24 – Nov 24<\/strong><\/td>\n491.27<\/td>\n37,385.41<\/td>\n-13.46<\/td>\n122.62<\/td>\n9,979.93<\/td>\n64.19<\/td>\n<\/td>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

    Source: DGCI&S<\/p>\n

    Strategic Implications for India\u2019s G&J Sector<\/strong><\/p>\n

    The CEPA agreement has created a conducive environment for Indian jewellers to expand their footprint in the UAE, a key global jewellery hub. The removal of import duties has enhanced India\u2019s competitive edge, boosting long-term trade partnerships and ensuring continued growth in exports.<\/p>\n

    With UAE\u2019s rising importance as a key market, Indian exporters must leverage CEPA\u2019s benefits by further strengthening business collaborations and diversifying product offerings. The agreement\u2019s success underscores its potential as a model for future trade deals, fostering sustained economic growth for both nations.<\/p>\n

    GJEPC Recommendations <\/strong><\/p>\n

    The India-UAE CEPA has undeniably transformed trade dynamics, particularly for the gem and jewellery sector. However, to further enhance bilateral trade, GJEPC urges the following strategic actions:<\/p>\n

      \n
    1. Manufacturing-Retail Integration<\/strong>: India should position itself as a manufacturing hub for UAE-based jewellers, while Indian retailers expand into Dubai, replicating the successful Hong Kong-Mainland China model.<\/li>\n
    2. Investment in Manufacturing<\/strong>: UAE investors should be encouraged to participate in India\u2019s jewellery parks, mega CFCs, and infrastructure projects, fostering greater value addition.<\/li>\n
    3. IJEX Dubai as a Designated Zone<\/strong>: To streamline trade, recognising IJEX Dubai as a Designated Zone will allow smoother imports under CEPA for businesses not registered in the UAE.<\/li>\n
    4. Ease of Doing Business<\/strong>: Addressing consignment-based exports, exhibition shipments, and import clarity will further strengthen India\u2019s competitiveness.<\/li>\n<\/ol>\n

      With these measures, India-UAE bilateral trade can scale to US$ 30 billion within five years, solidifying CEPA\u2019s role as a game-changer for the industry.<\/p>\n

       <\/p>\n

       <\/p>\n","protected":false},"excerpt":{"rendered":"

      Three years ago, India and the UAE inked a landmark trade deal: the Comprehensive Economic Partnership Agreement (CEPA). GJEPC explores how CEPA has transformed bilateral trade, boosting exports, reshaping market dynamics, and unlocking significant opportunities for Indian jewellers. The Comprehensive Economic Partnership Agreement (CEPA) between India and the UAE, formalised on 18th February 2022, has…<\/p>\n","protected":false},"author":1,"featured_media":30073,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[100],"tags":[],"thb-sponsors":[],"class_list":["post-30067","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-in-focus"],"acf":[],"yoast_head":"\nCEPA Turns 3: Powers the India-UAE Trade Surge - solitaire magazine<\/title>\n<meta name=\"description\" content=\"Three years ago, India and the UAE inked a landmark trade deal: the Comprehensive Economic Partnership Agreement (CEPA).\" \/>\n<meta name=\"robots\" content=\"index, follow\" \/>\n<meta name=\"googlebot\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<meta name=\"bingbot\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/gjepc.org\/solitaire\/cepa-turns-3-powers-the-india-uae-trade-surge\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"CEPA Turns 3: Powers the India-UAE Trade Surge - 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