The World Gold Council (WGC) said in a report that US has become India’s largest export market for gold jewellery ahead of the UAE.
As a result of increased tariffs on Chinese jewellery entering the US, which increased the competitiveness of Indian exporters, the US is now the top market for Indian gold jewellery, according to WGC.
Secondly, the UAE’s implementation of a 5 per cent import duty in 2017 and 5 per cent Value Added Tax (VAT) in 2018 have negatively impacted its competitiveness.
According to the WGC, a Comprehensive Economic Partnership Agreement (CEPA), which will go into effect in May 2022, will grant duty-free access to 90% of Indian commodities exported to the UAE. India's exports of gold jewellery have significantly increased and will continue to expand as a result of products sold in the UAE being re-exported.
Exports of jewellery are projected to increase as the Indian government works to increase manufacture and exports. According to WGC, proposals to establish massive common facility centres (CFCs) at the Santacruz Electronics Export Processing Zones (SEEPZ) in Mumbai and Surat, as well as to permit advance payments to foreign precious metal suppliers, could spur sector expansion.