Textile export units in Tirupur and Noida plan to increase their workforce by up to 15% and 30%, respectively, while the jewelery trade said artisans in West Bengal would get more jobs as jewelry made by them is in great demand in the UAE market.
India and the United Arab Emirates on February 18 signed a Comprehensive Economic Partnership Agreement (CEPA) – the country’s first free trade agreement with a major trading partner in more than a decade.
It should come into force at the beginning of May.
“We expect our export revenue to exceed Rs 40,000 crore in FY23 when the FTA comes into force,” said Lalit Thukral, Chairman of Noida Apparel Export Cluster ( NAEC).
He said the garment units in Noida will have to increase their workforce by 25-30% as they expect good orders from the United Arab Emirates, from where the garments are shipped to other countries like Africa of the South and Russia.
The cluster, which houses around 3,000 units, currently employs around 700,000 people and exports garments worth around Rs 30,000 crore annually.
Raja Shanmugam, chairman of the Tirupur Exporters Association, expects the government to strike more such trade deals with the European Union (EU), Canada and others. “It will increase the market for Indian products and send a positive signal to job seekers,” he said.
Tirupur’s textile units, which employ about 600,000 people, are expected to increase their workforce by 10-15%.
Gemstone and jewelry exporters are also expecting an increase in business, with the UAE accounting for 80% of India’s gold jewelry exports and 20% of studded jewelry exports.
The trade deal came at an opportune time as the two countries seek to rebound from the Covid-19 setback and realign their shared commercial interests, including gold and diamonds.
Ramesh Bhogilal Vora, managing director of Bafleh Jewelers, an Indian gold jewelery importer based in Dubai, said CEPA will create more jobs in India.
“Kolkata jewelry is very popular in Dubai,” he said. “The FTA will create jobs not only for artisans in Bengal but also elsewhere like Delhi, Mumbai and South India as well.”
Shamlal Ahamed, Managing Director of International Operations at Malabar Gold & Diamond, said, “The proposed FTA will pave the way for India to become the OEM (original equipment manufacturer) manufacturing base for global brands. Currently, Singapore is the OEM for many jewelry products in the UAE. »