Editor’s Note
A new EU-India trade agreement will eliminate tariffs on finished jewelry imports, opening significant access for Indian exporters to the lucrative European market. This move comes at a critical time of rising metal prices and shifting global trade dynamics.
Amidst a sharp rise in metal prices and an ever-evolving trade landscape, the European Union will eliminate tariffs on finished jewelry imported from India under a new trade agreement reached between the two parties. Specifically, this agreement removes the 2% to 4% tariffs that were levied on precious jewelry, unlocking enormous export potential to the bloc of 27 EU countries, home to some of the world’s most exclusive buyers.
India’s exports of gems and jewelry reached $30 billion in the calendar year 2024. Bilateral trade with the EU stood at $5.2 billion, with exports valued at $2.7 billion (8.92% of the total) and imports at $2.5 billion. However, European imports of jewelry from India remain limited, at $628 million, of which $573 million corresponds to precious jewelry and $55 million to fashion or imitation jewelry. These products were previously subject to tariffs of 2% to 4%, which allowed competitors without trade agreements to dominate the market.
Europe is one of the most important destinations for Indian jewelry. However, tariffs of up to 4% have allowed other competing countries to dominate the market, according to the GJEPC.
The India-EU Free Trade Agreement (FTA) will decisively boost market diversification for the gems and jewelry industry. This transformative agreement aims to double bilateral trade to $10 billion (approximately 91,000 crore rupees) within three years. Zero-tariff access to the world’s largest consumer market will allow major export hubs in Gujarat, Rajasthan, Maharashtra, and West Bengal to increase shipments of precious jewelry (plain and studded), silver, and imitation jewelry, capitalizing on India’s recognized excellence in design. In a context where exports to the United States have fallen by 44%, this agreement comes at a key moment to help Indian exporters regain lost ground.
Amidst the strong increase in metal prices and an evolving trade dynamic, the agreement will improve margins, strengthen competitiveness in design and craftsmanship, accelerate manufacturing, and foster job creation. For Indian jewelry retailers, it opens new opportunities to expand their brands across Europe, leveraging their growing global presence.
Tariff-free access opens opportunities in multiple segments, leveraging India’s competitive advantage in lightweight and minimalist gold jewelry, mechanized production, studded jewelry, silver, colored gemstones, and fashion jewelry. In the long term, this will boost exports, improve competitiveness, generate employment, and significantly strengthen bilateral trade.