The Gem & Jewellery Export Promotion Council (GJEPC) anticipates that the Trade and Economic Partnership Agreement between India and the European Free Trade Association (EFTA) will significantly elevate gem and jewellery exports to Switzerland, Iceland, Norway, and Liechtenstein. The exports are projected to surge to $1 billion in the coming years, a substantial increase from the present $335 million.
On Thursday, the council announced that the EFTA four-country bloc has eliminated customs duties on the entire Chapter 71 (gem and jewellery products), granting Indian exporters duty-free access to those markets.
“The $100 billion bilateral trade pact has opened up immense opportunities for Indian gem and jewellery manufacturers to broaden their export prospects in the EFTA region,” GJEPC chairman Vipul Shah said. “It will also pave the way for new and larger FTAs with many other European countries … I believe there is a huge scope for exporting fine gold jewellery and silver jewellery with high gloss and matte finishes, as well as luxurious diamond and coloured gemstone jewellery.”
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In 2023, the bloc imported finished gem and jewellery products valued at $12.3 billion, with India contributing only 2.7% to that figure. The industry anticipates that the trade partnership will enable Indian exporters to secure a significantly larger portion of the EFTA market.
According to the trade agreement, imports of various items including natural and cultured pearls, natural rough diamonds, precious and semi-precious colored gemstones, polished synthetic stones, and diamond stone dust and powder from EFTA countries into India will gradually become duty-free over a period of five, seven, or ten years. Customs duty on imported cut and polished diamonds, precious and semi-precious colored gemstones, and polished lab-grown diamonds from EFTA has been reduced from 5% to 2.5% and will be phased out in five equal annual installments. India imports all these items and re-exports them after value addition.
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