Latest news with #India-UAEComprehensiveEconomicPartnershipAgreement
Time of India
24-05-2025
- Business
- Time of India
Ahmedabad jewellers seek transparency in gold TRQ allocation under India-UAE Comprehensive Economic Partnership Agreement
1 2 3 4 Ahmedabad: Jewellers in Ahmedabad raised concerns over the opaque allocation process for gold import quotas under the India-UAE Comprehensive Economic Partnership Agreement (CEPA) for FY 2025–26. In a formal representation to the Directorate General of Foreign Trade (DGFT), the Jewellers' Association of Ahmedabad (JAA) urged the govt to publish clear eligibility criteria for tariff rate quota (TRQ) allotment and scrap the Rs 25 crore turnover threshold, which they say disadvantages smaller jewellers and distorts market competition. Under the current TRQ application process, jewellers, bullion traders, and manufacturers were required to submit past turnover figures and pay a non-refundable Rs 1 lakh fee. However, many applicants said they were unaware of any turnover threshold at the time of applying in Feb. "A turnover-based eligibility rule which was rescinded in 2023 was quietly reinstated, restricting access for smaller jewellers and bullion traders," said JAA president Jigar Soni. "This not only runs contrary to the spirit of CEPA, which is to promote wider market participation, but also creates an uneven playing field in favour of larger corporates." by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Transforme sua disposição com esta solução natural recomendada por especialistas AlwaysFit Undo Several applicants said they had no knowledge of the Rs 25 crore qualifying bar until results were announced. "I submitted a complete TRQ application, paid the Rs 1 lakh fee, but had no idea about any turnover requirement," said Hardik Choksi, a jeweller from Manek Chowk in Ahmedabad. "This essentially means small businesses like ours are not even in the running, and the benefits of the duty concession will be concentrated among big traders. We will end up buying gold at higher prices from them, which affects our margins and market standing." The issue gained further traction after the DGFT, in a meeting on April 29, disclosed that it received over 3,000 TRQ applications—a 253% rise over the previous year, but only about 1,400 were approved. Officials reportedly prioritised firms with "considerable business size" and "manufacturing capacity", a move that sparked calls for greater transparency. "The turnover clause was officially scrapped last year," said Bhavin Patalia, a chartered accountant who filed over 100 TRQ applications. "If the govt planned to bring it back, applicants should have been clearly informed." Box: CEPA and the TRQ system The India-UAE Comprehensive Economic Partnership Agreement (CEPA), signed in 2022, allows for duty concessions on select goods to enhance bilateral trade. Under this, India permits the import of up to 200 metric tonnes of gold annually from the UAE at a 1% duty discount — lower than the standard import duty — through a tariff rate auota (TRQ) mechanism. Jewellers, bullion traders, and manufacturers must apply to the Directorate General of Foreign Trade (DGFT) for TRQ certificates to access this concession. The quota is distributed based on eligibility criteria, which applicants say lacked transparency this year. Get the latest lifestyle updates on Times of India, along with Brother's Day wishes , messages and quotes !
Time of India
22-05-2025
- Business
- Time of India
Indian investments in Dubai up after CEPA: President and CEO, Dubai Chambers
The India-UAE Comprehensive Economic Partnership Agreement (CEPA) has led to a rise in Indian investments in Dubai across sectors such as software and IT services, consumer products, business services, food and beverages, and real estate, fuelled by the agreement's trade facilitation measures and streamlined regulatory environment, Mohammad Ali Rashed Lootah, president and CEO of Dubai Chambers said. "Since the CEPA between India and the UAE came into effect, we have observed a significant increase in Indian business activity across multiple sectors. Trading, logistics, and manufacturing are among the key growth areas directly benefiting from the tariff reductions and streamlined trade procedures facilitated by the agreement," he said. The CEPA came into effect on May 1, 2022. The UAE is India's third largest trading partner. India's goods exports to the UAE in April-February FY25 were $33.23 billion and imports were $55.74 billion. "There is a vast potential for collaboration for India and in areas such as artificial intelligence, e-commerce, specialised healthcare, and advanced manufacturing," Lootah said, adding that India's foreign direct investment (FDI) into Dubai reached $4.1 billion in 2020-2024. "Beyond these well-established sectors, India's strong presence and expertise within the IT and technology fields ensure powerful synergies between our markets," he added. For Dubai, he said the top sectors for investments in India include transportation and warehousing, business services, real estate, software and IT services and financial services.
Hindustan Times
20-05-2025
- Business
- Hindustan Times
Navigating the FTA maze
As India approaches its economic goals, including exploring the path of free trade agreements (FTAs), like many other growing economies, India faces an important challenge: maximising the potential of its IT sector, while preserving local manufacturing under the Make in India campaign. Achieving this requires a delicately balanced legal and policy framework which embraces global opportunity without signing away national interest. The Make in India initiative has been the forefront of the current government's economic development initiative since 2014 – with an aim to increase the contribution of India's manufacturing sector to 25% of India's total Gross Domestic Product (GDP) by 2025. However, due to increasing foreign competition through imports, its contribution has stagnated between 14% - 17% as of 2024. FTAs globally have produced mixed results. For example, FTAs such as the India-UAE Comprehensive Economic Partnership Agreement (CEPA) and India-Singapore Comprehensive Economic Cooperation Agreement (CECA) have increased exports in industries like engineering, textiles and gems and promoted IT collaboration. However, FTAs with the Association of South East Asian Nations (Asean), Japan, and South Korea have increased trade deficits driven by cheaper imports from China in sectors such as electronics and textiles. These imports, often rerouted through FTA partners (like Asean), damage domestic manufacturing operations. Consequently, these FTAs risk undermining Make in India. Further, exports are also impacted by a stronger nationalistic ideology in these regions. India's IT sector is positioned to benefit from FTAs, as these could improve market access – especially in territories like the European Union (EU), where relaxing visa requirements could significantly expand service export opportunities. However, other non-tariff barriers, such as EU's regulatory standards (e.g., GDPR compliance) and high import standards create substantial compliance costs. Further, FTAs with open procurement clauses might also expose smaller Indian IT companies to competition from global giants. India has signed 15 FTAs till date and is currently engaged in negotiations with key partners like the US, and the EU. Import surges and increased global competition pose challenges for sensitive sectors, such as agriculture, pharma, and smaller IT companies, necessitating policy adjustments. There is a need for India to align FTAs with our national priorities as FTAs without proper strategic safeguards could run the risk of prioritising imports over domestic production, and increasing dependence on foreign players, which could impede Make in India and Atmanirbhar Bharat. Measures that may be taken include: · Establishing robust review mechanisms such as joint working groups with partner countries, to monitor import surges, non-tariff barriers, and the overall impact of the FTA. · Protecting sensitive sectors like agriculture and small-scale manufacturing from tariff concessions, similar to what India has done in the past, to protect domestic industries. · Investing in research and development to enhance the competitiveness of domestic industries and create a niche for Indian products as a result of increased quality. · Maximising IT benefits through the following: Current government initiatives like the Production-Linked Incentive (PLI) scheme, have significantly contributed to the growth in key sectors like manufacturing and export of smartphones. FTAs can further enhance these policy measures by securing reciprocal market access for Indian IT services, thereby off-setting import pressures. PLI coupled with FTAs can also lead to increased foreign investment in domestic IT sector, thereby enhancing not just the service component of India's IT sector but also the product and software development component. Aligning FTAs with domestic priorities is important for India to maximise its growth potential and establish itself as a leading economic powerhouse. This requires a balanced strategy of openness and resilience, which includes stronger review mechanisms, prioritized reciprocal access, eased professional mobility, fostered technology collaborations, and investments in skills and infrastructure. These efforts will be key to solidifying India's IT leadership and advancing Make in India (for the world). This article is authored by Probir Roy Chowdhury, partner & corporate chair, JSA Advocates and Solicitors.
Economic Times
20-05-2025
- Business
- Economic Times
Dubai Gold can come only through agencies nominated under CEPA
Tired of too many ads? Remove Ads India Monday imposed restrictions on import of gold and silver in unwrought, semi manufactured and powdered form, allowing imports only through nominated agencies, qualified jewellers and valid tariff rate quota holders under the India-UAE Comprehensive Economic Partnership Agreement (CEPA).The restrictions are based on Budget FY26 announcement to introduce new HS (Harmonised System) codes or tariff codes for key items like gold dore, silver dore and platinum containing at least 99% importers used this loophole to bring in products that were 99% gold from Dubai, labelling them as platinum alloy to take advantage of lower duties under the India-UAE block this misuse, the government introduced a new HS code specifically for platinum containing 99% or more pure platinum. Only this category qualifies for duty benefits under the pact. Imports under other platinum compositions were restricted. This effectively closed the route for importing gold disguised as platinum."This measure follows the Budget announcement to create separate HS codes to ensure that gold imports don't happen in the name of platinum," said an official, adding that this alignment ensures consistency between customs duties and import regulations. Under the agreement, India agreed to import up to 200 metric tonnes of gold annually from the UAE with a 1 per cent tariff concession under tariff rate quota (TRQ).
Time of India
19-05-2025
- Business
- Time of India
Dubai Gold can come only through agencies nominated under CEPA
India Monday imposed restrictions on import of gold and silver in unwrought, semi manufactured and powdered form, allowing imports only through nominated agencies, qualified jewellers and valid tariff rate quota holders under the India-UAE Comprehensive Economic Partnership Agreement (CEPA). The restrictions are based on Budget FY26 announcement to introduce new HS (Harmonised System) codes or tariff codes for key items like gold dore, silver dore and platinum containing at least 99% platinum. Some importers used this loophole to bring in products that were 99% gold from Dubai, labelling them as platinum alloy to take advantage of lower duties under the India-UAE CEPA. To block this misuse, the government introduced a new HS code specifically for platinum containing 99% or more pure platinum. Only this category qualifies for duty benefits under the pact. Imports under other platinum compositions were restricted. This effectively closed the route for importing gold disguised as platinum. "This measure follows the Budget announcement to create separate HS codes to ensure that gold imports don't happen in the name of platinum," said an official, adding that this alignment ensures consistency between customs duties and import regulations. Under the agreement, India agreed to import up to 200 metric tonnes of gold annually from the UAE with a 1 per cent tariff concession under tariff rate quota (TRQ). Live Events
