The Gem & Jewellery Export Promotion Council (GJEPC) welcomes the elimination of import duties on Indian gem and jewellery products under the India-EU Free Trade Agreement (FTA). This removes 2-4% duties on precious jewellery, unleashing huge export potential with the 27-member EU bloc—home to the world’s elite buyers.
India’s gem and jewellery exports accounted for USD 30 billion in CY 2024. Bilateral trade with the EU reached USD 5.2 billion, with exports at USD 2.7 billion (8.92% of total) and imports at USD 2.5 billion. EU jewellery imports from India remain limited at USD 628 million, of which USD 573 million is precious jewellery and USD 55 million is fashion (imitation) jewellery—these currently attract 2-4% duties— leaving the market dominated by non-FTA competitors.
Kirit Bhansali, Chairman, GJEPC thanked Hon’ble Prime Minister Shri Narendra Modi and Commerce & Industry Minister Shri Piyush Goyal for securing the India-EU FTA, the ‘mother of all trade deals’.
The India-EU FTA will supercharge market diversification for the gem and jewellery industry. This transformative pact aims to double bilateral trade to USD 10 billion (~Rs. 91,000 crore) within three years. Zero-duty access to the world’s largest consumer market empowers export hubs in Gujarat, Rajasthan, Maharashtra, and West Bengal to ramp up shipments of precious jewellery (plain and studded), silver, and imitation jewellery—capitalizing on India’s renowned design prowess. Especially with exports to the USA down by 44%, this timely pact will help Indian exporters salvage lost ground.
Amid soaring metal prices and evolving trade dynamics, the deal enhances margins, sharpens our competitive edge in design and craftsmanship, accelerates manufacturing, and generates jobs. For Indian jewellery retailers, it opens doors to expand brands across Europe, building on their rising global footprint.”
Zero-duty access opens doors across segments, leveraging India’s edge in lightweight/minimalist gold, machine-made, studded, silver, coloured gemstone, and fashion jewellery. This will boost exports, improve competitiveness, create jobs, and significantly improve bilateral trade in the long run.
INDUSTRY VOICES
Sevantibhai Shah, Founder & Chairman, Venus Jewel, Surat, said, “Indian craftsmanship in diamonds and jewellery will now benefit from greater ease in working directly with European jewellery brands and boutiques hence enabling faster delivery, lower costs, and unprecedented opportunities for growth across the vast EU market. This landmark achievement reflects the visionary leadership of Honourable Prime Minister Shri Narendra Modiji and the dedicated efforts of Honourable (Commerce & Industry) Minister Shri Piyush Goyalji.”
Colin Shah, MD, Kama Jewelry, Mumbai, noted, “The signing of the India-EU Free Trade Agreement is a historic achievement that looks promising to bring relief to the gem and jewellery industry in India, especially given the current trade dynamics with the USA. The removal of duties under this FTA is a highly regarded move that will empower Indian gems & jewellery exporters to compete effectively in the European market, especially when gold and silver prices are skyrocketing.
“This strategic diversification of Indian exports will help revive the sheen of the gems & jewellery trade, which has been on a decline for months, with occasional spikes in between. The removal of duties has been a constraint, and we thank the government and authorities involved for this measure, which will help reinforce Bharat’s position as a global jewellery hub across the international supply chain.”
Tarang Arora, CEO & Creative Head, Amrapali Jewels, Jaipur, stated, “The Indo-EU FTA marks a defining moment for India’s gems and jewellery industry. With progressive duty rationalisation, improved market access and greater regulatory alignment, Indian exporters will be able to compete on a far more level playing field in the European Union. Over the long term, this agreement will not only enhance India’s export competitiveness but also encourage deeper design collaboration, value addition, and trust-based partnerships with European buyers. It strengthens India’s positioning as a responsible, design-led and globally integrated jewellery manufacturing hub.
“Beyond export growth, the FTA will catalyse investments in craftsmanship, compliance, sustainability and brand building areas that are critical for the industry’s long term resilience and global relevance.
“Importantly, the FTA sends a strong signal of confidence in India’s manufacturing ecosystem. It encourages Indian exporters to move further up the value chain from volume driven exports to design led, story rich jewellery that resonates with European consumers. Over time, this will help formalise supply chains, promote skill development, and reinforce India’s reputation not just as a sourcing destination, but as a creator of culturally rich, high quality jewellery with global appeal.”
Vivek Shah, Founder of Karma Enterprises, Ahmedabad, who has been exporting to Europe since the last 23 years, said, “Europe values thoughtful design, fine craftsmanship and lasting partnerships. With the historic India-EU FTA in place, Indian manufacturers now have a strong opportunity to expand their presence across the continent. Our strengths in design development, flexibility and customer service position us well to meet European expectations.”