India–EU Trade Pact Poised to Spark Major Growth in Jewellery Exports

• India–EU FTA offers zero-duty access, aiming to double gems and jewellery trade to $10 billion in three years.

• Removal of 2–4% tariffs boosts India’s competitiveness in the EU’s high-value consumer market.

• Benefits key export hubs and diverse jewellery segments while supporting jobs, margins, and market diversification.

  
  

Zero-duty market access under the newly concluded India–European Union Free Trade Agreement (FTA) could significantly boost bilateral trade in gems and jewellery, potentially taking it to $10 billion (about ₹91,000 crore) within the next three years, according to the Gem and Jewellery Export Promotion Council (GJEPC).

The agreement eliminates import duties ranging from 2 to 4 per cent on precious jewellery entering the EU, a move expected to unlock substantial export opportunities across the 27-member bloc, which is home to some of the world’s most affluent jewellery consumers.

Describing the pact as a turning point for the industry, GJEPC chairman Kirit Bhansali said the India–EU FTA would play a key role in expanding market reach and reducing dependence on a limited set of destinations. He noted that the agreement aims to double bilateral gems and jewellery trade to nearly ₹91,000 crore over a three-year period.

With tariff-free access to one of the world’s largest consumer markets, major Indian manufacturing and export hubs such as Gujarat, Rajasthan, Maharashtra, and West Bengal are expected to scale up shipments of plain and studded gold jewellery, silver items, and imitation jewellery. Bhansali highlighted that India’s strong capabilities in design and craftsmanship position it well to capitalise on this opportunity.

India and the European Union formally announced the conclusion of FTA negotiations in New Delhi on Tuesday. Official figures show that India’s gems and jewellery exports stood at around $30 billion in 2024.

Trade between India and the EU remains a central pillar of their economic relationship, with total bilateral trade exceeding $190 billion in 2024–25. During this period, India exported $75.9 billion worth of goods and $30 billion in services to the EU, while European exports to India amounted to $60.7 billion in goods and $23 billion in services.

Despite this scale, jewellery imports by the EU from India remain relatively modest at $628 million. Of this, precious jewellery accounts for $573 million, while fashion or imitation jewellery makes up $55 million. These products currently face duties of 2–4 per cent, a factor that has allowed competitors from non-FTA countries to dominate the market.

Industry leaders believe the timing of the agreement is particularly important, given the sharp decline in exports to the United States, which have reportedly fallen by 44 per cent. The EU pact is expected to help Indian exporters offset some of these losses by opening up new growth avenues.

Bhansali added that at a time of rising metal prices and shifting global trade patterns, the agreement would improve profit margins, strengthen India’s competitive position in design and craftsmanship, accelerate manufacturing activity, and support job creation. He also pointed out that Indian jewellery retailers would gain fresh opportunities to establish and expand their brands across European markets.

According to the GJEPC, duty-free access will benefit a wide range of segments, including lightweight and minimalist gold jewellery, machine-made and studded pieces, silver jewellery, coloured gemstones, and fashion jewellery. Over the long term, this is expected to enhance export performance, improve competitiveness, generate employment, and deepen overall trade ties between India and the European Union.