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Plain Gold Jewellery to Gulf Takes a Hit

Plain Gold Jewellery to Gulf Takes a Hit

Fri Aug 11 2017


Export of plain gold jewellery to the Gulf region may take a hit with jewellers in the UAE setting up manufacturing units to avoid paying 5% duty on imported gold jewellery.


Indian exporters fear that a 10% import duty on gold in India and a 3% GST is making Indian jewellery less attractive in the UAE, where there is no import duty on gold as a raw material. Industry executives said many jewellery wholesalers in the Gulf have started employing jewellery artisans from India who are adept in handcrafted jewellery , which sees good demand in Gulf.


“It is a matter of concern that exports of plain gold jewellery have declined in the UAE,“ said Praveen Shankar Pandya, chairman of Gem & Jewellery Export Promotion Council (GJEPC). “This will definitely have an impact on the overall gold jewellery exports in the current financial year.“


In the first quarter of 2017-18, gold jewellery exports in value terms dropped by 41.67% from a year ago to `. 10,631.74 crore. “The UAE has contributed to a large extent to this drop. Falling crude prices too have taken away disposable income from UAE buyers,“ said Pandya.


Rajiv Popley, director of Popley & Sons, who has stores in Dubai, said though they are not setting up a manufacturing unit there, they have entered into strategic tie-ups with manufacturing facilities in the UAE to supply jewellery to their stores. Ahammed MP, chairman of Malabar Gold & Diamonds, said after GST launch, there is an increase in sale of gold in the UAE and Indians are said to among the top buyers. “The immediate trigger is the revised tax structure for gold in India. UAE price continues to be lower in comparison,“ he said.


Source: Economictimes.Indiatimes.com