Three years of India-UAE CEPA: Gems & jewellery exports flourish as bilateral trade doubles

Gems and jewellery remain among the top exported products, contributing to the $83.7 billion bilateral trade in FY 2023-24

Dubai: The India-United Arab Emirates (UAE) Comprehensive Economic Partnership Agreement (CEPA) marked its third anniversary on February 18, 2025. Signed during a virtual summit between Prime Minister Narendra Modi and UAE President Sheikh Mohamed bin Zayed Al Nahyan on February 18, 2022, CEPA came into effect on May 1, 2022, and has significantly aided bilateral trade between India and the UAE.

Bilateral trade volume between India and the UAE has nearly doubled from $43.3 billion in FY 2020-21 to $83.7 billion in FY 2023-24. As of January 2025, the trade volume stood at $80.5 billion for the current fiscal year. Non-oil trade – with gems and jewellery being a leader – has expanded significantly, reaching $57.8 billion in FY 2023-24, accounting for more than half of the total trade. This aligns with the bilateral goal of achieving $100 billion in non-oil trade by 2030. Since CEPA’s enforcement, approximately 2,40,000 Certificates of Origin have been issued, facilitating exports worth $19.87 billion to the UAE under preferential duties.

Under CEPA, one of the key benefits for the jewellery sector is that Indian gold and diamond jewellery can be exported to the UAE without facing import duties, which makes it more competitive in the UAE market, one of the largest in the world for gold and diamonds. The agreement has boosted exports from India to the UAE by making it easier and more cost-effective for Indian jewellery businesses to expand their reach in the UAE, besides opening doors to better market access for Indian jewellery manufacturers. Reduced tariffs have given Indian manufacturers a pricing advantage over competitors from other regions.

CEPA also promotes investment in the jewellery sector, offering opportunities for Indian jewellery businesses to establish a foothold in the region. As the UAE is home to a large Indian diaspora, CEPA has paved the way for joint marketing initiatives that promote Indian-made jewellery in the UAE and beyond, capitalizing on cultural ties and the growing demand for Indian craftsmanship.

India’s non-oil exports to the UAE have reached $27.4 billion in FY 2023-24, reflecting an average growth rate of 25.6% since CEPA’s introduction. Apart from refined crude oil and gems and jewellery, sectors such as electrical machinery, light and medium high-technology goods including boilers, generators, and reactors, as well as organic and inorganic chemicals, have seen substantial growth.

To address trade-related challenges, both governments have engaged in regular high-level meetings and technical discussions. The Joint Committee, established to oversee CEPA’s implementation, has convened twice, with the most recent meeting held in October 2024.

The Bharat Mart initiative, inaugurated by the Indian Prime Minister in Dubai, is expected to serve as a centralized platform for Indian manufacturers to showcase their products to global markets, further supporting export growth.

Overall, the India-UAE CEPA has created a more favourable environment for the jewellery sector, boosting exports, reducing costs, and encouraging further investments and collaborations, all of which are vital for growth in this highly competitive global market.

Retail Jeweller India News