EU FTA offers fresh hope to tariff-hit gem & jewellery exporters

Kolkata: The India–European Union free trade agreement is expected to enable Indian gem and jewellery exporters to expand their share in a $17 billion market where the main competitors are from Thailand, China and Hong Kong, which do not have such pacts with the bloc.

It will also be a big relief for an industry hurt badly by high US tariffs and support jobs in India.

India and the EU share a substantial bilateral gem and jewellery trade, which was worth around $5.2 billion in calendar year 2024 with Indian exports accounting for $2.7 billion.


“The India-EU FTA will help in market diversification for the gem and jewellery industry. This transformative pact aims to double bilateral trade to Rs 91,000 crore ($10 billion) within three years,” said Kirit Bhansali, chairman of the Gem & Jewellery Export Promotion Council (GJEPC).

Zero-duty access to the world's largest consumer market will allow jewellery export hubs in Gujarat, Rajasthan, Maharashtra and West Bengal to ramp up shipments, Bhansali said. “This timely pact will help Indian exporters salvage lost ground” when exports to the US are down 44%, he said.

Amid rising prices of precious metals and evolving trade dynamics, the deal will enhance margins, sharpen India’s competitive edge in design and craftsmanship, accelerate manufacturing and generate jobs, he said. “For Indian jewellery retailers, it opens doors to expand brands across Europe, building on their rising global footprint."

In calendar 2024, the EU accounted for 8.92% of India’s total gem and jewellery exports.

As part of the FTA, pearls, precious stones and metals from the EU will face lower tariffs in the Indian market. Tariffs of up to 22.5% will be eliminated for 20% of the products, while another 36% of the products will face lower duties.

The FTA offers significant opportunities across all jewellery segments, including precious metal jewellery as well as imitation jewellery in the EU market, trade executives said.

Jewellery products comprising gold, platinum, silver and imitation jewellery constitute some of the EU’s key import items within the gem and jewellery sector. The bloc annually imported about $16.75 billion of these items, according to Trade Map-2024.

Other than India the jewellery demand in EU is met by countries like Italy, Switzerland, France, Türkiye, the UK, the US, Thailand, China and Hong Kong.

Improved market access, combined with India’s strengths in lightweight and minimalist gold jewellery, machine-made jewellery, studded jewellery, silver jewellery, coloured gemstone jewellery, and fashion jewellery, is expected to significantly boost exports to the EU, a senior GJEPC official said.