Malabar Gold and Diamonds has become the first jeweller in India to import gold under the Comprehensive Economic Partnership Agreement (CEPA) between India and the UAE.
Availing one per cent duty reduction under the bilateral trade agreement, the Kozhikode-headquartered jewellery retail chain with a robust presence in India and in West Asia has set the ball rolling by importing25 kg gold through ICICI Bank.
The import makes the jewellery retail chain the first beneficiary of the partnership agreement both in jewellery exports and imports.
MP Ahammed, Chairman, Malabar Group, said “The import will boost our `Make in India, Market to the World’ mission, which aims to drive demand for Indian jewellery across global markets banking on its unique craftsmanship. We’ll utilise the imported gold to enhance our domestic jewellery production capacity and generate employment, thus making India a global hub for jewellery sourcing and OEM manufacturing.”
In May, the company became one of the first beneficiaries of India-UAE CEPA when it received permission to export jewellery from India to the UAE with tax concessions. Under the agreement, the UAE Government has waived the five per cent import duty into the UAE.
The CEPA between India and the UAE came into effect on May 1, 2022, after Union Commerce and Industry Minister Piyush Goyal and UAE Minister of Economy Abdulla bin Touq Al Marri signed the agreement in Delhi in February.
Malabar Gold and Diamonds currently has over 290 showrooms and 14 manufacturing units across 10 countries. It has plans to take the total showroom count to 373 by end-March 2023 with presence in 13 countries.
Founded in 1993, Malabar Gold and Diamonds has come a long way to become the world’s fifth largest jewellery retailer with its annual turnover touching approximately ₹30,000 crore. With 13 cluster manufacturing units in India and GCC, the company currently has 12 jewellery brands.