FTA Impact: Overview
The Gem & Jewellery Export Promotion Council (GJEPC) reported that India's gem and jewellery exports reached $30 billion in CY24. Simultaneously, bilateral
trade with the EU totaled $5.2 billion. Crucially, the FTA has eliminated import duties on these products, a move highly welcomed by the GJEPC. This strategic decision levels the playing field, making Indian exporters as competitive as those from China and Thailand within the extensive European market. The removal of these duties is a game-changer, especially because it removes the 2-4% duties on precious jewellery. It is anticipated this will unlock tremendous export potential within the 27-member EU, a region home to numerous significant buyers globally.
Trade Figures and Benefits
India's exports to the EU, which form part of the $5.2 billion in bilateral trade, reached $2.7 billion (8.92% of the total), while imports from the EU stood at $2.5 billion. The FTA gives a great advantage to the gems and jewellery sector, opening the second-largest global market to India. Before the FTA, Indian exporters faced a disadvantage, as their products faced tariffs when entering the European market. China and Thailand, however, enjoyed zero tariffs. The FTA now ensures that Indian exporters can compete on equal terms. The agreement is poised to not only boost export numbers but also strengthen India's position in the global gem and jewellery trade by giving access to a wider market.
