India and the UAE are collaborating to add value to gold and gold products

According to Piyush Goyal, India’s minister of commerce and industry, the UAE and India are exploring methods to enhance trade in value-added gold and gold products.

He promised that a decision in this respect will be made public in due time.

He said that, after Switzerland, the UAE is one of India’s main sources of gold and that New Delhi would want to promote commerce with the UAE even more.

A free trade agreement allows India to provide certain tariff exemptions on the import of gold from the United Arab Emirates.

He claimed there were certain problems that had to do with operationalizing those concessions but they are now resolved.

Since May 1 of last year, the trade deal, formally known as CEPA (comprehensive economic partnership agreement), has been in effect.

India has consented to import taxes that are lenient for up to 200 tonnes of gold each year. Gold often has a 15% import tariff.

India is now hoping that the UAE exporters will be able to transport the required amount of gold in accordance with the agreement this year so that the Indian gold jewellery industry may benefit from the duty-free status.

India’s gems and jewellery are widely imported into the United Arab Emirates.

He told reporters, “We are also exploring new avenues to deepen and engage our collaboration on the processing and joint work on value addition in gold and gold products, which we will reveal in due time.

Anil Talreja, Partner, Deloitte India, commented on the India-UAE trade agreement by saying that, in terms of total commerce between organisations operating in each of these countries, the medical tourism, real estate, commodity trading, and services sectors continue to hold a major piece of the pie.