India has exported $300 million (approximately Rs 2,400) to Australia in its first shipment of jewelery products consisting of gold, silver and imitation jewellery, under the Economic Cooperation and Trade Agreement.
ECTA is expected to double the bilateral gem and jewelery trade from the current $1.27 billion to $2.5 billion over the next three years.
An additional $1 billion in deals could create 88,000 domestic jobs. India’s exports will benefit from preferential zero-tariff market access for 100% of tariffed items in Australia, the Gems and Jewelery Export Promotion Council of India said.
India offers priority access to Australia on over 70% of its tariffed items.
Trade and Industry Minister Piyush Goyal has suspended shipments of goods from Mumbai, Surat and Chennai to mark the launch of the free trade agreement.
Goyal said the deal with Australia, the second FTA this year, would likely export finished products as it is primarily a raw material and intermediate producer.
GJEPC Chairman Vipul Shah said a zero percent tariff on jewelery exports to Australia, consisting of gold, silver and imitation jewelery, would result in additional charges for these products.
The government has protected the domestic industry by not lowering import tariffs on gold/silver/platinum jewellery, he said.