The First Consignment of Gems & Jewellery Under the India-Australia ECTA Flags Off From Chennai
- 0% duty on jewellery products made up of gold, silver and imitation jewellery exported to Australia
- Indian exports will benefit from preferential zero duty market access in Australia for 100% of its tariff lines
- India has provided preferential access to Australia on over 70% of its tariff lines
29th December 2022, Chennai: The Govt. has ensured to end the year on a high note. Marking the beginning of yet another successful FTA, India flagged off the first consignment under the India-Australia Economic Cooperation and Trade Agreement (ECTA) on 29th December from different ports of the country, i.e. from Chennai, Mumbai, and Surat ports.
The flag off ceremony at Chennai Air Cargo Customs was held in the presence of Smt. Rajalakshmi Devaraj, I.D.A.S, Zonal Additional Director General of Foreign Trade; Shri Mahendiravarma RA, IRS, Jt. Commissioner, Chennai, Air Cargo Customs, Shri. A.V. Narasimhan, Asst. Commissioner, Chennai, Air Cargo Customs, Shri. Princeson Jose, Regional Chairman (South), GJEPC and Shri. Surya Narayanan, Regional Director (South) GJEPC.
Smt. Rajalakshmi Devaraj, I.D.A.S, Zonal Additional Director General of Foreign Trade said, “The removal of trade barriers between India and Australia serves the commercial interests of both nations. The ccompetitiveness of Indian exports will increase due to immediate zero duty access and will result in higher market share. The pact will boost overall bilateral trade and benefit various labour intensive sectors of Indian products wherein import duty from existing 5% becomes zero under India-Australia ECTA.
Vipul Shah, Chairman, GJEPC said, “This is yet another commendable achievement by the Government of India that will be instrumental in accelerating growth for Gem & Jewellery sector. The India-Australia ECTA will boost the bilateral gem and jewellery trade to double from the present value of US$ 1.27 billion to US$ 2.5 billion over the next 3 years. 0% duty on jewellery products made up of gold, silver and imitation Jewellery exported to Australia will provide a fillip to these products. An additional trade of US$ 1 billion is likely to generate employment for 88,000 workers in India. While the gem & jewellery products have got free access to Australia, the Govt. has protected the domestic industry by not decreasing import duty on gold/silver/platinum jewellery.”
Mr. Princeson Jose, Regional Chairman, (South) said, “By removing barriers to trade, the ECTA will usher in the next big growth phase for the Indian G&J industry. Our superior craftsmanship in gold, diamonds and studded jewellery at competitive price points makes it an unbeatable combination.”
K. Srinivasan, Managing Director of Emerald Jewel Industry India Ltd. said, “I thank the Indian Govt. for successfully negotiating another FTA, this time with Australia. I am glad that my company is part of the historic moment, flagging off first consignment under India-Australia ECTA. We are exporting 7kg of plain gold jewellery (light weight) and CZ studded Jewellery. I am confident that this pact will double the gem & jewellery exports from India to Australia in the coming few years.”
The India-Australia ECTA aims to significantly enhance bilateral trade in goods and services, create new employment opportunities, raise living standards, and improve the general welfare of the people of the two countries.
Indian exports will benefit from preferential zero duty market access in Australia for 100% of its tariff lines, which will benefit India’s labour-intensive sectors such as gems and jewellery, textiles, leather, footwear, furniture, food, and agricultural products, engineering products, medical devices, and automobiles.
On the other hand, India has provided preferential access to Australia on over 70% of its tariff lines, which are primarily raw materials and intermediaries such as coal, mineral ores etc., which are required for our domestic manufacturing industry.
The negotiation with Australia for an FTA was based on the suggestions and recommendations taken from different stakeholders across industries. It is expected that it will yield similar result as we get to see from India-UAE CEPA, which helped India achieve overall exports growth of 20% to UAE. Gem & jewellery exports to UAE has seen a growth of 25% till date.
The following member companies of GJEPC exported consignments on 29th December 2022 under India-Australia ECTA:
- Emerald Jewel Industry India Ltd, from Chennai