FTA's Transformative Potential
The Gem and Jewellery Export Promotion Council (GJEPC) projects that the Free Trade Agreement (FTA) between India and the European Union will have a profound effect on the gems and jewellery trade. The primary
objective is to double the trade value, eventually reaching a total of $10 billion. This ambitious target demonstrates the FTA's potential to significantly boost the sector. The FTA is expected to remove trade barriers and facilitate smoother transactions, which will, in turn, accelerate the growth of the gems and jewellery businesses in both India and the EU member countries. This increased trade volume is likely to lead to greater economic activity, generating more employment opportunities and stimulating the industry's overall expansion. These projections reflect a positive outlook, as the agreement aims to establish a more competitive and integrated market for gems and jewellery.
Strategic Industry Advantages
The FTA's design encompasses several strategic advantages to support the growth of the gems and jewellery trade. Key strategies include tariff reductions and the simplification of customs processes, which will reduce costs and make trade easier. By streamlining the processes, businesses can navigate international transactions with better ease. In addition, the FTA will likely facilitate the creation of a more transparent and predictable trade environment, creating a level playing field for businesses in both India and the EU. This will involve stringent adherence to international standards and regulations. The agreement should also encourage investments in technology and infrastructure, which should modernize the gems and jewellery supply chains. These improvements should enhance the overall efficiency and competitiveness of the sector and create a more conducive environment for industry players, whether they are exporters, manufacturers, or retailers, to thrive.
Boosting Trade Dynamics
The implications of the FTA are substantial for the gems and jewellery industry. The reduction in tariffs will lower prices for consumers and make Indian products more competitive in the EU market. This increased competitiveness is expected to translate into higher demand for Indian gems and jewellery. This should also promote further innovation and development in the industry. The FTA offers various opportunities for the sector. As businesses expand, there will be greater opportunities to create alliances and collaborations between Indian and European firms. Moreover, it is expected that the FTA would attract international investments, which would provide the necessary capital to scale up production capacity and explore new markets. The industry is in line to benefit, as the agreement is designed to create a vibrant trade environment and encourage sustained growth and mutual prosperity.
