India-EU FTA: India's gems & jewellery sector on par with China, Thailand

India-EU FTA brings zero-duty access for gems and jewellery, putting Indian exporters on par with China and Thailand and opening Europe's vast market

Gems and jewellery exporters have hailed the India-EU free trade agreement (FTA), saying it brings relief to the sector as it opens up the world’s second-largest market and puts India at par with China and Thailand, which already enjoy zero tariffs with the EU.

 

The Gem & Jewellery Export Promotion Council (GJEPC) said in a statement that it welcomes the elimination of import duties on Indian gems and jewellery products under the India-EU Free Trade Agreement (FTA). 

“This removes 2–4 per cent duties on precious jewellery, unleashing huge export potential with the 27-member EU bloc — home to the world’s elite buyers,” the statement said.

 

India’s gems and jewellery exports accounted for $30 billion in CY2024, and bilateral trade with the EU reached $5.2 billion, with exports at $2.7 billion (8.92 per cent of the total) and imports at $2.5 billion, GJEPC said.

 

The statement added that EU jewellery imports from India remain limited at $628 million, of which $573 million is precious jewellery and $55 million is fashion (imitation) jewellery — these currently attract 2–4 per cent duties — leaving the market dominated by non-FTA competitors.

 

Kirit Bhansali, chairman, GJEPC, thanked Prime Minister Narendra Modi and Commerce and Industry Minister Piyush Goyal for securing the India-EU FTA, calling it the “mother of all trade deals”.

 

“The India-EU FTA will supercharge market diversification for the gems 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 imitation jewellery — capitalising on India’s renowned design prowess. Especially with exports to the US down by 44 per cent, this timely pact will help Indian exporters salvage lost ground,” the release added.

 

Colin Shah, managing director of Kama Jewels, told Business Standard that the India-EU FTA opens 27 countries to the sector and helps trade for both sides.

 

“Currently, India competes with China and Thailand, which already benefit from zero tariffs, but with the FTA, the Indian gems and jewellery industry will benefit significantly, especially in light of the tariffs imposed by the US. We hope more markets open up for India,” he said.

 

“The India-EU free trade agreement will fuel growth in trade between India and EU member states. Manufacturing of gems and jewellery in India will increase, resulting in the generation of more employment, followed by further growth in the country’s economy,” Pramod Agrawal, chairman of the National Gems and Jewellery Council of India, said.