India-EFTA Pact Set to Triple Gem and Jewellery Exports to Europe, Reaching $1 Billion Milestone

Surat : The recent Trade and Economic Partnership Agreement (TEPA) between India and the European Free Trade Association (EFTA) has laid the foundation for an exponential increase in exports. With an ambitious target to elevate exports from $335 million to a staggering $1 billion, the agreement marks a significant milestone in India’s trade relations with EFTA countries, including Switzerland, Iceland, Norway, and Liechtenstein.

The gem and jewellery (G&J) sector in India, renowned for its exquisite craftsmanship and unparalleled quality, is poised for a monumental leap in its export capabilities following the historic India-EFTA TEPA. The EFTA bloc, consisting of Switzerland, Iceland, Norway, and Liechtenstein, has agreed to eliminate customs duties on chapter 71, which encompasses gem and jewellery products, thus granting Indian exporters duty-free access to these markets.

Vipul Shah, Chairman of the Gem and Jewellery Export Promotion Council (GJEPC), has expressed profound gratitude towards the Government of India and, in particular, Shri Piyush Goyal, the Hon’ble Minister of Commerce & Industry, for their pivotal role in integrating GJEPC’s recommendations into the TEPA. Shah highlighted the potential for Indian G&J exports to the EFTA region to skyrocket from the current $335 million to an anticipated $1 billion, signifying not just a quantitative boost but a qualitative expansion into untapped European markets.

The agreement, a $100 billion bilateral trade pact, not only augments the export potential of Indian G&J manufacturers but also sets the stage for future Free Trade Agreements (FTAs) with other European countries. The focus on exporting fine gold jewellery, silver jewellery with high gloss and matte finishes, and luxurious diamond and coloured gemstone jewellery is expected to meet the sophisticated demands of the EFTA market.

The GJEPC played a crucial role in the negotiations, advocating for the industry’s best interests through detailed recommendations. The agreement promises to considerably enhance India’s market share in the EFTA’s total G&J imports, which stand at $12.3 billion, with India currently contributing a mere 2.7%.

Furthermore, the agreement outlines specific relaxations and duty reductions for the import of G&J products from EFTA countries into India, including a phased elimination of duties on a range of products over 5, 7, and 10 years. Notably, the duty on imports of cut and polished diamonds, as well as precious and semi-precious coloured gemstones, is set to be halved from 5% to 2.5%, with further reductions planned.