In February 2017, by 47% The Gold jewellery exports from India have fallen due to the jewellery routed through UAE is badly impacted.

The two major factors impacting the gold export from India is UAE w.e.f from January 1st, 2017 imposes 5% import duty on jewellery and The Indian government has a 10% import duty on gold imported for making jewellery.

In January Indian Gold jewellery exports fell by 24% and in February further by 47.52% and India’s market share has been gained by competitors like China. By Indians exporters and jewelry manufacturers, to avoid 5% import levy many manufacturing units are being set up in UAE. For, the same the gold artisans are moving to UAE and about 20% of Indian jewellery business might move to UAE.

The import duty on gold the Indian government should cut, expected by the government and stop the fall in Gold jewellery exports make it below 5%. As per a data made by Gems and Jewellery Export Promotion Council (GJEPC), which shows that in February 2017, gold jewellery exports fell to Rs 2,810.60 crore from Rs 5,355.47 crore in comparison to February 2016.

If this situation continues, to UAE, Indian exporters will be forced to either look at other markets and routes or think about moving facilities. The industry has been impacted badly due to the latest move of 1% excise duty and other supply restriction.

The post In Feb Indian Gold Jewellery Exports Down 47% appeared first on Trade Genius.

As starting from January, Indian jewellery exports will get impacted in the coming future, from the previous 0.36 % to 5 % the import duty has been hiked in Dubai.

As a hub for jewellery business, the jewellery exporters may discontinue using Dubai and to the other countries’ markets start selling straight away. In last two months, large exports have already happened and gold and in Dubai jewellery has been stocked up. India has exported; about 32 % Out of the Gems and jewellery has been shipped to UAE.

In India, the jewellery business as to face a lot of restrictions felt by the jewellery industry and India Jewellery exports will be uncompetitive due to this duty increment by Dubai. Some exporters to save on the duty may shift their business to Dubai.

For exports, many jewellers have their hub in Dubai. From Dubai to other developed nations Jewellery is re-exported with increased markups.

At Dubai, many of the tourists buy jewellery due to high prices in their own countries. In comparison with many western countries, jewellery is sold at a low markup In Dubai. On top of high markups, buying jewellery became a very expensive affair as these countries also add VAT.

In the short term, the gold and jewellery business in Dubai could impact by the increased duty, said by experts. As it will come out as a strong manufacturing unit, so in long term, Dubai will not have any impact. From 62% in 2011 to 34% this year, Indian exports to UAE have fallen though India is the biggest supplier of gems and jewellery. India may see a competition in diamond and precious stone handmade jewellery besides this fall in exports s the artists making these will in most likelihood move to Dubai. In this industry in India, because of the increasing job losses, there is seen in a shift of skilled labour. The other factors like a tax-free income, efficient workforce, low-cost capital, etc will attract these export businesses to Dubai.

By many jewellers, for re-export, Dubai was preferred as a hub due to the facilities and flexibilities extended there. The ones most impacted will be the South Indian jewellers as they export largely to Dubai.

The post Jewellery Exports Will Impact By Hike In Dubai Import Duty appeared first on Trade Genius.

8% of India’s annual gems and jewellery shipments have been bought by the European Union. To EU the Indian gems and jewellery shipments are worth $39 billion.

The exports worth more than $ 3 billion from the Indian industry may take a hit as India is not included in the latest GSP (Generalized System of Preferences) list for gems and jewellery sector of the European Union. From the origin to destination countries Under GSP tax incentives are given. In the gems and jewellery sector, Since last three years as India had GSP status and so in the EU countries, the Indian exporters got a benefit of 2.54% on customs duties and on value added tax between 20-25 per cent. In 2014-15, the gems and jewellery export saw a rise to $3.6 billion. In 2015-16, it declined to $3.2 billion as market conditions were not favourable. The new list has already been released and this regime will end in this month and India is not on the list in this sector.

As per non-GSP commodities, now the customs duties and VAT that India gems and jewellery exporters will have to pay will be applicable. By the EU, About 8% of the annual shipments of gems and jewellery, worth $39 bn are taken. To the EU, the decision will definitely hit our exports. With the ministry of commerce very soon, we would certainly take up this issue, said by Gems and Jewellery Export Promotion Council Chairman Praveen Shankar Pandya.

The international industry is already very unclear and this exemption out of the GSP list is including further threats. As the rates will increase, the Indian gems and jewellery will become uncompetitive.

The post To EU Worth $3 Billion Gems And Jewellery Exports May Take A Hit appeared first on Trade Genius.