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

Exporters of gems and jewellery have said the free-trade agreement (FTA) has brought relief to their sector because this opens up the world’s second-largest market and brings them on a par with China and Thailand, which face zero tariffs on shipments to Europe. 

The Gem & Jewellery Export Promotion Council (GJEPC) said in a statement: “This removes 2-4 per cent duties on precious jewellery, unleashing huge export potential with the 27-member EU (European Union) bloc — home to the world’s elite buyers.”

India’s exports of gems and jewellery in CY24 accounted for $30 billion 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, the GJEPC said. 

The statement added the EU’s jewellery imports from India remained limited at $628 million, of which $573 million was precious jewellery and $55 million was 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 & Industry Minister Piyush Goyal for securing the India-EU FTA, the “mother of all trade deals”. 

“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 (₹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 USA down by 44 per cent, this timely pact will help Indian exporters salvage lost ground,” the release added. 

Colin Shah, managing director, Kama Jewels, told Business Standard the FTA opened up 27 countries to the sector and this helped trade for Indian and the EU. 

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

Pramod Agrawal, chairman, National Gems and Jewellery Council of India, said: “The agreement will fuel growth in trade between India and EU members. The manufacturing of gems & jewellery in India will increase, resulting in more employment, followed by further economic growth.”