Page 12 - Bullion World Volume 02 Issue 08 September 2022

Bullion World | Volume 2 | Issue 09 | September 2022

Figure 1: India’s Export and Import of Gems and Jewellery with UAE over 5 Years

18,000
16,000
Value in USD Million 12,000
14,000

10,000
8,000
6,000
4,000
2,000
0
2017-2018 2018-2019 2019-2020 2020-2021 2021-2022

Total Export (HS Code 71) Total Import (HS Code 71)

Source: Extracted and Compiled from Export-Import Data Bank, Department of Commerce, Ministry of Commerce and Industry,
Government of India. Available at https://tradestat.commerce.gov.in/ (last accessed September 1, 2022)

Note: HS Code 71: Natural or cultured pearls, precious or semi-precious stones, precious metals, metals clad with precious metal,
and articles thereof; imitation jewellery; coin

constituted only 1.10 percent of proposes to allow reverse job work,
imports in 2021-22. Thus, the which will benefit the industry.
negative trade balance and rise in
imports from the UAE may not be a Second, as India sign trade
cause for concern for policymakers agreements, units in Indian SEZs
as raw material and intermediate are not in an equal position vis-à-vis
imports may facilitate more value the units located in our FTA partner
addition in the country. countries as the units in FTA partner
countries enjoy zero duty exports to
The Way Forward India, while the units in SEZs have
While tariff reduction under the to pay autonomous tariff on sales to
trade agreement seems to have the DTA. This should be addressed
helped to enhance the export to ensure more value addition in
competitiveness, there are certain the country. Third, there has been
concerns. First, firms located in significant innovation in design and
special economic zones in countries use of technology in competing
like China, Philippines and Turkey are countries like Turkey due to which
cushioned against the seasonality in Turkey has become a dominant
Almost 91 percent of the export demand as the policy allow player in the global gold jewellery
gems and jewellery imports them to cater to the domestic tariff market, taking away the export
from UAE comprised of raw area (DTA). Unlike them, at present, competitiveness of India. Indian
material/intermediate goods for there is no policy on reverse job firms need to innovate and upgrade
manufacturing jewellery. ‘Diamonds, work in the existing SEZ regulation to meet such competition. There is
not mounted/set, unworked (HS in India. In reverse job work, a unit in need for brand-building, marketing
code 710231)’, accounted for 57 SEZ can undertake job work for the and promotion. All these factors
percent of the imports, and ‘gold, DTA, including after sales services. together will help to enhance the
other unwrought forms (HS code The Development of Enterprise and future exports from India.
710812)’ accounted for 34 percent Service Hubs (DESH) Bill 2022,
of imports from UAE in 2021-22. The which is expected to be tabled at
‘gold jewellery (HS code 711319)’ the winter session of the Parliament,

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