India’s gems and jewellery industry is poised for a major expansion following the India-EU Free Trade Agreement, which offers duty-free access to one of the world’s largest consumer markets. Industry bodies and exporters believe the agreement will help Indian manufacturers compete on equal footing with global rivals while driving market diversification.
According to the Gem and Jewellery Export Promotion Council, India’s exports of gems and jewellery stood at $30 billion in calendar year 2024. Bilateral trade between India and the European Union reached $5.2 billion, with Indian exports accounting for $2.7 billion, or nearly nine per cent of the country’s total sectoral exports, while imports stood at $2.5 billion.
Despite this scale, Europe’s jewellery imports from India remained modest at $628 million. Of this, $573 million came from precious jewellery and $55 million from fashion or imitation jewellery. These exports currently face duties ranging between two and four per cent, which has allowed non-FTA competitors to dominate the European market.
FTA to Level the Playing Field
The GJEPC said the removal of these duties would unlock significant export potential across the 27-member European Union, home to some of the world’s most premium jewellery buyers. With zero-duty access, Indian exporters will be placed on par with countries such as China and Thailand, which already enjoy tariff-free entry into Europe.
Kirit Bhansali, chairman of the GJEPC, described the India-EU FTA as a landmark agreement and thanked Prime Minister Narendra Modi and Commerce and Industry Minister Piyush Goyal for securing what he called a transformative trade deal for the sector.
Market Diversification and Export Revival
Industry leaders believe the agreement will significantly diversify export destinations at a time when shipments to the United States have declined sharply. The GJEPC said the FTA aims to double bilateral trade in gems and jewellery to $10 billion, or around Rs 91,000 crore, within the next three years.
Export hubs in Gujarat, Rajasthan, Maharashtra and West Bengal are expected to scale up shipments of plain and studded jewellery, silver ornaments and imitation jewellery, leveraging India’s strong design capabilities and skilled workforce.
Colin Shah, managing director of Kama Jewels, said the agreement opens access to 27 European markets, improving trade prospects for both Indian exporters and EU buyers. He noted that while India currently competes with China and Thailand, which already benefit from zero tariffs, the FTA strengthens India’s position, particularly in the context of higher duties imposed by the United States.
Manufacturing and Employment Boost
Pramod Agrawal, chairman of the National Gems and Jewellery Council of India, said the agreement would accelerate trade growth between India and EU member states. He added that increased exports would lead to higher domestic manufacturing activity, generate employment and support broader economic growth.
With tariffs removed and market access expanded, the India-EU FTA is expected to play a critical role in reshaping India’s gems and jewellery export landscape.
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