The India-EU FTA will supercharge market diversification for the gem and jewellery industry.
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Mumbai: Zero-duty access under the India-EU Free Trade Agreement could help double the bilateral gems and jewellery trade to USD 10 billion (around Rs 91,000 crore)over the next three years, the Gem and Jewellery Export Promotion Council (GJEPC) said on Tuesday.
This removes 2-4 per cent duties on precious jewellery, unleashing huge export potential with the 27-member EU countries, home to the world's elite buyers.
"The India-EU FTA will supercharge market diversification for the gem and jewellery industry. This transformative pact aims to double bilateral trade to 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 imitation jewellery, capitalising on India's renowned design prowess," GJEPC chairman Kirit Bhansali said.
The European Union and India on Tuesday announced the conclusion of negotiations for the free trade agreement (FTA) in New Delhi.
India's gem and jewellery exports accounted for USD 30 billion in 2024, according to official data.
The bilateral trade is a cornerstone of the India-EU relationship, with total trade surpassing USD 190 billion in 2024-25. India exported USD 75.9 billion in goods and USD 30 billion in services to the EU, while the EU exported USD 60.7 billion in goods and USD 23 billion in services to India.
EU jewellery imports from India remain limited at USD 628 million, of which USD 573 million is precious jewellery and USD 55 million is fashion (imitation) jewellery. These currently attract 2-4 per cent duties, leaving the market dominated by non-FTA competitors.
This FTA is timely, especially with declining exports to the US, which were down by 44 per cent, and this pact will help Indian exporters salvage lost ground.
"Amid soaring metal prices and evolving trade dynamics, the deal enhances margins, sharpens our competitive edge in design and craftsmanship, accelerates manufacturing, and generates jobs. For Indian jewellery retailers, it opens doors to expand brands across Europe, building on their rising global footprint," Bhansali said.
Moreover, zero-duty access opens doors across segments, leveraging India's edge in lightweight/minimalist gold, machine-made, studded, silver, coloured gemstone, and fashion jewellery, he said, adding that this will boost exports, improve competitiveness, create jobs, and significantly improve bilateral trade in the long run.