Page 9 - Bullion World Volume 02 Issue 01 May 2022

Bullion World | Volume 2 | Issue 01 | May 2022

Q- As an independent advisor of DGCX and someone who has seen manufacturer because we
the Dubai bullion and refining sector emerges closely. How do you manufacture many varieties of
see this development? jewellery in India and now export
Mr Pramod Mohan: It reflects the efforts made by the government them to the UAE at 0% import duty.
officials in line with the industry leaders in promoting a good standard for Similar types are manufactured
gold. It is an important milestone for the UAE’s good delivery after a long in Malaysia, Singapore, Turkey,
term. Keeping in mind that the UAE has become a significant refining and Italy. But they have to pay
centre for gold jewellery, we have seen a substantial increase in jewellery import duty when exporting to the
manufacturing in the last couple of years. So, the current outcome, the UAE. So, whatever the export is
CEPA, where you have got a differential rate for gold bullion and jewellery,
is definitely in the right direction. It will help the trade between these two going right now, it will increase
countries to a new level. the minimum by double. This
agreement will be a step forward
to our PM’s vision of Make in India.
Our manufacturers are going to get
good business. They will supply to
the UAE, and from there, it will get
supplies worldwide.

Q- Plain gold jewellery is around
3.5 billion. How much will it be in
UAE?
Mr K Srinivasan: The plain gold
jewellery will increase by double
and triple. When it used to be a
5% import duty, our Cost of goods
used to be very high for the Dubai
Q- What is the status of gold jewellery imports from UAE recently, importer. Now the moment there
and will the concession investigated here provide new opportunities is no import duty, their disposable
for UAE based manufacturers to look at India for marketing the income will increase for them. They
jewellery? will promote selling our jewellery.
Mr Chandu Siroya: India has given a 1% concession. The UAE has We will take the manufacturing
provided a full concession, so anyone who wants to export jewellery market share of neighbouring
to the UAE will be able to do so without any duties. So, Indian made countries.
jewellery will become very competitive in UAE. So, as jewellery traders in
the UAE, we will be able to offer Indian made jewellery at a much more Q- How much jewellery last year
competitive price to the world. So, I believe there will be perfect business came from India to UAE. How was
between the two countries. Manufacturing will increase in India because it? Was it more on the studded or
small manufacturers in the UAE may shift their base to India as there is no the plain gold side?
duty and the manufacturing cost is a little higher in the UAE compared to Mr Chandu Siroya: UAE is a
India. Overall, it will benefit both countries. significant importer of plain gold
jewellery. Studded is also there,
What about the jewellery export from UAE to India? but the majority is straight only. We
Mr Chandu Siroya: This will not be beneficial because the duty rate is buy 21 carats as well 22 carats.
very high. And the everyday jewellery cannot be sold under such high Some 18 carats jewellery is also
duty. If the duty can be lowered, the UAE jewellers can export. So, there imported from India from someone
is no advantage here under CEPA. having advanced manufacturing
technology like the Italians and
Q- How do you see it? Will this lead to the competition? Any Turkish.
pressures? Or it will have no effect at all? What are the positives you
see in this?
Mr K Srinivasan: It is a golden opportunity for an Indian jewellery

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