Unlocking Billions: India's Vision for Gems and Jewellery Trade with the EU

The Strategic Imperative: Lowering Trade Barriers for Indian Jewellery

As discussions for the India-EU Free Trade Agreement (FTA) draw to a close, and with the India-EU Summit scheduled for January 27, 2026, in New Delhi, the Gem & Jewellery Export Promotion Council (GJEPC) of India has intensified its plea to the Indian government. The council is strongly advocating for the elimination or significant reduction of import tariffs imposed by the EU on Indian-made jewellery. These tariffs, currently ranging from 2.5% to 4% on items such as gold, silver, platinum, imitation jewellery, and coins, are seen as major impediments to the competitiveness of Indian exports. By securing more favorable tariff conditions, India aims to unlock considerable market advantages, particularly given the current upward trend in gold and silver prices.

Reciprocal Benefits: GJEPC's Approach to a Balanced FTA

In pursuit of a balanced and equitable trade agreement, the GJEPC has not only requested tariff reductions for Indian products but has also put forward a proposal for measured concessions on certain imports from the EU. This includes a focus on diamonds and colored gemstones, demonstrating a willingness to create a mutually beneficial environment. Kirit Bhansali, Chairman of the GJEPC, underscored the vital importance of these negotiations. He applauded the persistent efforts of India's Prime Minister, Shri Narendra Modi, and Commerce and Industry Minister, Shri Piyush Goyal, in advancing the FTA discussions. Bhansali expressed strong confidence that this agreement would yield substantial benefits for the gem and jewellery sector. He emphasized that lower tariffs on jewellery would be crucial in enabling Indian exporters to expand their presence in the vast European import market, enhance profit margins for Micro, Small, and Medium Enterprises (MSMEs), and sustain employment opportunities throughout the entire value chain.

Transforming India's Export Landscape: Beyond Raw Materials

A robust Free Trade Agreement is envisioned as a powerful catalyst for reshaping India's export profile. The GJEPC believes that by creating a more level playing field, Indian exporters can transition from primarily supplying raw materials to significantly increasing their volume in higher-value finished jewellery categories. This shift is expected to solidify India's long-term position within the global trade ecosystem as a producer of sophisticated and high-quality jewellery. The Mumbai-based council holds high expectations for the successful conclusion of the pact, urging the Indian government to secure tangible, sector-specific outcomes that will dramatically expand India's influence in the European gem and jewellery market.

Current Trade Dynamics and Future Growth Potential

India and the European Union already maintain a strong bilateral trade relationship in the gem and jewellery sector, with a current valuation of approximately US$ 5.15 billion. As of calendar year 2024, India's exports to the EU reached US$ 2.7 billion, while imports from the EU totaled US$ 2.5 billion. While cut and polished diamonds currently dominate India's exports to the EU, accounting for US$ 1.72 billion, followed by gold jewellery (US$ 453 million) and silver jewellery (US$ 85 million), the GJEPC has highlighted significant untapped potential within the finished jewellery categories. Current data vividly illustrates this opportunity for expansion:

• For gold jewellery, the EU-27's annual global imports stand at US$ 11.37 billion. However, India's contribution to this market is a mere US$ 468 million, representing a modest market share of only 4.11%.
• In the silver jewellery sector, where the EU's global import market is valued at US$ 2.47 billion, India's share is even smaller, at just US$ 104 million (4.2%).
• Similarly, for imitation jewellery, India holds only a 2% share of the EU's US$ 2.7 billion import market.