The India-EU free trade agreement (FTA), finalised on Tuesday, is expected to give a major boost to India’s gems and jewellery sector, which has been struggling under the weight of 50% US tariffs, reduced discretionary spending, and rising precious metal prices. For Indian jewellery retailers, the trade deal presents an opportunity to expand across Europe and strengthen their global footprints.
From tariffs of up to 4% previously to gaining preferential access across 100% of trade value, the sector stands to gain and become more competitive now in the EU market. The industry body, the Gem & Jewellery Export Promotion Council (GJEPC), has welcomed the elimination of import duties on Indian gem and jewellery products under the free trade agreement. “This removes precious 2-4% duties on jewellery, unleashing huge export potential with the 27-member EU bloc, home to the world’s elite b ..
India’s gem and jewellery exports accounted for $30 billion in CY 2024. Bilateral trade with the EU reached $5.2 billion, with exports at $2.7 billion (8.92% of total) and imports at $2.5 billion. EU jewellery imports from India remain limited at $628 million, of which $573 million is precious jewellery and $55 million is fashion (imitation) jewellery.
Outlining the advantages of the trade deal, Kirit Bhansali, Chairman of GJEPC, said that the India-EU FTA will supercharge market diversification for the gem and jewellery industry. “This transformative pact aims to double bilateral trade to $10 billion (Rs 91,000 crore) within three years. Zero-duty access to the world’s largest consumer market empowers export hubs in Gujarat, Rajasthan, Maharashtra, and West Bengal to ramp up shipments of precious jewellery (plain and studded), silver, and imi ..
Echoing similar sentiments, Paresh Parekh, Partner and National Leader for Tax-Consumer Products and Retail Sector, EY India, said that the zero-duty access should eliminate India’s disadvantage in Europe by placing Indian exporters on equal footing with competitors who already enjoy duty-free access. “The industry expects the bilateral gems & jewellery trade could double to about $10 billion within 3 years of the deal taking effect. Market diversification is helpful, especially given steep ..
The zero-duty access is expected to open doors across segments, leveraging India’s edge in lightweight/minimalist gold, machine-made, studded, silver, coloured gemstone, and fashion jewellery. “This will boost exports, improve competitiveness, create jobs, and significantly improve bilateral trade in the long run,” GJEPC highlighted.
Source Name : Economic Times