FTA to double gems-jewellery trade to $10bn: GJEPC

Surat: At a time when India's gems and jewellery exports to the US have been hit hard by higher tariffs, the conclusion of the long-awaited India–European Union Free Trade Agreement (FTA) has brought a wave of optimism to the industry.Announced in New Delhi on Tuesday, the agreement is expected to significantly boost trade between India and the 27-member EU bloc, which is home to some of the world's most affluent consumers of luxury jewellery.The Gem and Jewellery Export Promotion Council (GJEPC) said zero-duty market access under the FTA could double bilateral gems and jewellery trade to $10 billion within the next three years. Currently, the sector accounts for around $30 billion of India's total exports, with trade with the EU standing at $5.2 billion in 2024 — including exports worth $2.7 billion and imports of $2.5 billion.The agreement eliminates customs duties of 2–4% on precious jewellery, a barrier that had restricted India's competitiveness in Europe. At present, EU jewellery imports from India total only $628 million, comprising $573 million of precious jewellery and $55 million of imitation jewellery, largely due to these duties and competition from countries with preferential trade arrangements.GJEPC chairman Kirit Bhansali thanked Prime Minister Narendra Modi and Union commerce and industry minister Piyush Goyal for securing the deal, calling it a "transformative moment" for the sector."The India–EU FTA will supercharge market diversification for the gems and jewellery industry. It aims to double bilateral trade to $10 billion within three years. Zero-duty access to the world's largest consumer market will empower export hubs in Gujarat, Rajasthan, Maharashtra and West Bengal to scale up shipments of precious, silver and imitation jewellery, leveraging India's renowned design capabilities," Bhansali said.With exports to the US declining by 44%, he added, the agreement comes at a critical juncture. "Amid soaring metal prices and shifting trade dynamics, the deal will improve margins, enhance competitiveness, accelerate manufacturing and generate employment, while opening doors for Indian jewellery brands to expand across Europe."