The Gem & Jewellery Export Promotion Council (GJEPC) has lauded the recent elimination of import tariffs on Indian gem and jewellery products as part of the new India-EU Free Trade Agreement (FTA). This strategic move, which abolishes duties ranging from 2% to 4% on precious jewellery, is anticipated to unlock substantial export opportunities within the 27-nation European Union, a region known for its discerning buyers.
Highlighting the agreement's potential, India's gem and jewellery exports in the calendar year 2024 reached USD 30 billion. Trade between India and the EU amounted to USD 5.2 billion, with Indian exports contributing USD 2.7 billion. Despite the EU being a significant market, its imports of Indian jewellery were previously constrained by duties. The GJEPC anticipates that this new pact will invigorate market diversification for the industry. Kirit Bhansali, Chairman of GJEPC, expressed gratitude to Prime Minister Shri Narendra Modi and Commerce & Industry Minister Shri Piyush Goyal for their pivotal roles in securing what he described as the 'mother of all trade deals'. This transformative agreement is projected to elevate bilateral trade to USD 10 billion (approximately Rs. 91,000 crore) within the next three years, empowering major export centers in Gujarat, Rajasthan, Maharashtra, and West Bengal to significantly increase shipments of various jewellery types.
This zero-duty access is poised to enhance India's competitive edge in the global market, especially considering a 44% decline in exports to the USA. It will open new avenues for lightweight gold, machine-made, studded, silver, coloured gemstone, and fashion jewellery, leveraging India's renowned design and craftsmanship. Beyond boosting exports and improving competitiveness, the agreement is expected to accelerate manufacturing, create numerous jobs, and substantially improve bilateral trade relations in the long term. This development provides a timely boost for Indian exporters, allowing them to reclaim lost ground and expand their brand presence across Europe.
This landmark trade agreement signifies a forward-looking approach to international commerce, fostering economic growth and cultural exchange through the intricate artistry of Indian jewellery. It underscores the power of collaboration and mutual benefit, paving the way for a prosperous future for businesses and communities alike.