NEW DELHI: The India-Australia trade agreement is expected to unlock millions of dollars of additional trade due to the preferential access accorded towards India's gem and jewellery exports to the island nation.
The Gem and Jewellery Export Promotion Council (GJEPC), the industry body, expects the trade agreement to boost bilateral gem and jewellery trade from USD 1.3 billion at present to USD 2 billion annually.
Key commodities exported to Australia are plain gold jewellery, studded jewellery, and cut and polished diamonds. The main commodities imported from Australia are precious metals -- gold and silver bars.
"Since the India-Australia negotiations started, India's gem and jewellery exports have witnessed positive growth, complementing the upcoming India-Australia ECTA. India's G&J exports to Australia grew 21% to 183.86 million during April - October 2022 as compared to the same period last year," said Vipul Shah, Chairman of the council, in a statement on Wednesday.
Chairman Shah said he expects Australia to benefit from access to areas where India is a world leader, such as diamonds.
"By providing preferential access for Indian gems and jewellery exports, the deal also makes it cheaper for Australian retailers to procure world-class jewellery crafted with finesse from Indian manufacturers," Shah added. Australia is one of India's large suppliers of gold bullion, and until recently, it was also a key supplier of diamonds.
Australia's High Commissioner to India Barry O'Farrell today said the economic agreement will enter into force on December 29.
This announcement comes a week after Australian Prime Minister Anthony Albanese said that country's Free Trade Agreement (FTA) with India has passed through its Parliament.