The Gem & Jewellery Export Promotion Council (GJEPC) has lauded the newly established India-EU Free Trade Agreement (FTA), emphasizing its profound impact on the gem and jewellery sector. This agreement crucially removes import tariffs on Indian gemstone and jewellery items, a move anticipated to unlock substantial export potential within the 27-member European Union bloc.

India-EU FTA: Paving the Way for a $10 Billion Jewellery Trade Boom

In Mumbai, the GJEPC, represented by its Chairman Kirit Bhansali, expressed immense gratitude towards Prime Minister Shri Narendra Modi and Commerce & Industry Minister Shri Piyush Goyal for their instrumental role in securing the India-EU FTA. This agreement is expected to be a game-changer for India's gem and jewellery industry, which recorded exports of USD 30 billion in 2024. Despite a bilateral trade of USD 5.2 billion with the EU, only USD 628 million constituted jewellery imports from India, currently subject to 2-4% duties. With the elimination of these tariffs, the GJEPC envisions doubling bilateral trade to an impressive USD 10 billion within the next three years.

Mr. Bhansali highlighted that this zero-duty access to the world's largest consumer market will significantly empower India's prominent export hubs in Gujarat, Rajasthan, Maharashtra, and West Bengal. These regions are poised to enhance their shipments of precious jewellery (both plain and studded), silver items, and imitation jewellery, leveraging India’s acclaimed design expertise. This strategic pact is particularly timely, offering a crucial lifeline to Indian exporters who have experienced a sharp decline in exports to the USA due to recent tariffs. It is expected to help the industry reclaim lost ground and bolster its competitive edge in design and craftsmanship, accelerate manufacturing processes, and create numerous employment opportunities.

Furthermore, the FTA presents an unprecedented opportunity for Indian jewellery retailers to expand their brands across Europe, thereby strengthening their international presence. The agreement's zero-duty framework is anticipated to benefit various segments, including lightweight and minimalist gold jewellery, machine-made pieces, studded designs, silver jewellery, coloured gemstone creations, and fashion jewellery. This comprehensive access is set to drive exports, enhance market competitiveness, stimulate job creation, and foster substantial long-term growth in bilateral trade.

The successful negotiation of the India-EU FTA underscores the critical role of strategic trade policies in fostering economic growth and international partnerships. It exemplifies how removing trade barriers can create a win-win situation for all parties involved, benefiting both exporting and importing nations through increased trade volumes, expanded market access, and enhanced economic cooperation. This agreement not only promises a brighter future for India's gem and jewellery industry but also sets a precedent for how global trade relationships can be strengthened to achieve mutual prosperity.