<p>In a major boost to gems and jewellery exports, India's jewellery will get duty-free access in the UAE market after the two countries signed the Comprehensive Economic Partnership Agreement (CEPA) that is likely to come into effect from May 1.<br /><br />In return, India will charge one per cent less import duty on gold import of up to 200 tonnes per year from the Gulf nation, a move that could see more gold pouring into India from the UAE and help satiate the appetite of the world's second-largest consumer, whose demand in 2022 is likely to top 850 tonnes.</p>.<p>India imports about 800 tonnes of gold every year.</p>.<p><strong>Also Read | <a href="https://www.deccanherald.com/national/uae-india-sign-milestone-pact-to-boost-economies-1082955.html">UAE, India sign 'milestone' pact to boost economies</a></strong></p>.<p>"In this particular agreement, we have given UAE a tariff-rate quota of 200 tonnes where the import duty in perpetuity will be 1% less than whatever is the tariff charged for the rest of the world. Therefore, the UAE has a 1% price advantage in gold bars. That tariff difference means those 200 tonnes will be diverted to the UAE," Commerce Secretary BVR Subrahmanyam told reporters here Saturday.</p>.<p>He said that India will get zero duty access for its jewellery in the UAE market. This is a major advantage for gems and jewellery exporters.</p>.<p>Earlier, India paid a 5% duty on jewellery.</p>.<p>India is also likely to gain in sectors other than gold and jewellery after the trade pact was signed, the secretary said.</p>.<p>He further said at least 10 lakh job opportunities will be created after signing the trade pact. </p>.<p><strong>Watch the latest DH Videos here:</strong></p>
<p>In a major boost to gems and jewellery exports, India's jewellery will get duty-free access in the UAE market after the two countries signed the Comprehensive Economic Partnership Agreement (CEPA) that is likely to come into effect from May 1.<br /><br />In return, India will charge one per cent less import duty on gold import of up to 200 tonnes per year from the Gulf nation, a move that could see more gold pouring into India from the UAE and help satiate the appetite of the world's second-largest consumer, whose demand in 2022 is likely to top 850 tonnes.</p>.<p>India imports about 800 tonnes of gold every year.</p>.<p><strong>Also Read | <a href="https://www.deccanherald.com/national/uae-india-sign-milestone-pact-to-boost-economies-1082955.html">UAE, India sign 'milestone' pact to boost economies</a></strong></p>.<p>"In this particular agreement, we have given UAE a tariff-rate quota of 200 tonnes where the import duty in perpetuity will be 1% less than whatever is the tariff charged for the rest of the world. Therefore, the UAE has a 1% price advantage in gold bars. That tariff difference means those 200 tonnes will be diverted to the UAE," Commerce Secretary BVR Subrahmanyam told reporters here Saturday.</p>.<p>He said that India will get zero duty access for its jewellery in the UAE market. This is a major advantage for gems and jewellery exporters.</p>.<p>Earlier, India paid a 5% duty on jewellery.</p>.<p>India is also likely to gain in sectors other than gold and jewellery after the trade pact was signed, the secretary said.</p>.<p>He further said at least 10 lakh job opportunities will be created after signing the trade pact. </p>.<p><strong>Watch the latest DH Videos here:</strong></p>
