The European Union (EU)-India Free Trade Agreement (FTA) marks a pivotal moment for India’s jewellery industry, opening wider access to European markets through zero duties, streamlined trade norms, and improved ease of doing business. The FTA will go a long way in strengthening export prospects and long-term global competitiveness in the EU's $79-billion jewellery import market. It is pertinent to note that as of 2024, India’s gem and jewellery exports to the EU amounted to just $2.7 billion, representing a mere 8.92% of EU’s global gem and jewellery imports (as per the data of GJEPC).
Zero-duty access under the EU-India FTA is set to provide Indian jewellery exporters with a clear and immediate cost advantage in the European market, particularly when compared with suppliers from non-FTA countries. Says Sabyasachi Ray, Executive Director, GJEPC, “The tariff advantage directly improves pricing competitiveness, and strengthens India’s position in a highly competitive market. However, competitiveness in Europe is not only about price. The EU is a $79-billion jewellery market, a conglomerate of 27 countries, and home to some of the world’s most discerning and quality-conscious consumers.
“Success in this market requires Indian exporters to combine cost efficiency with design sensitivity, superior product quality, and strict compliance with European standards. Understanding consumer preferences, and meeting evolving sustainability and certification expectations are critical to long-term success.”
Ray goes on to add, “The agreement gives an opportunity for global expansion of Indian jewellery retail brands, enabling them to scale their presence across Europe with greater confidence. Importantly, GJEPC and the industry have already begun proactive engagement with European buyers and manufacturers.
“Through virtual B2B business connect initiatives, we are bringing Indian manufacturers and buyers from Europe (especially from Eastern European nations) together to gain deeper insights into EU consumer preferences, compliance requirements, and sourcing expectations, ensuring that product offerings are market-led, rather than supply-driven.”
Talking about how the FTA provides a level playing field for Indian jewellery exporters, Nilesh Chhabria, Finestar Jewellery and Diamonds, Mumbai, says, “Zero-duty access effectively removes the final cost handicap India faced in the European market. Historically, Chinese and Thai exporters held a competitive edge due to a 2%–4% tariff advantage; the FTA levels this playing field.
“For Indian exporters, this transition shifts the competition from price to value. Beyond the immediate cost savings, the agreement introduces simplified logistics through self-certification (Statement of Origin). This reduces administrative friction and lead times, allowing Indian firms to compete on speed and agility. By neutralizing the tax burden, Indian exporters can now leverage their core strengths — superior craftsmanship, intricate design, and large-scale manufacturing — to capture market share in high-end EU luxury hubs that were previously dominated by duty-free competitors.”
Adding to the discourse, Eshwar Surana, Raj Diamonds, Bengaluru, says, “The EU-India FTA, finalized in January 2026, eliminates 2%-4% duties on Indian diamonds and jewellery exports to the EU. This levels the playing field with respect to competitors like China and Thailand that already enjoy zero-tariff access. Zero-duty access enhances price competitiveness of Indian exporters.”Agrees Vipul Sutariya, Dharmanandan Diamonds, Mumbai, “The zero-duty access to Indian jewellery will definitely boost exports, and provide a leg-up to the gem and jewellery industry of India. Since Indian craftsmanship and quality have improved a lot in the recent past, European customers will surely look for more and more supply from our jewellery manufacturers.”
Agrees Vipul Sutariya, Dharmanandan Diamonds, Mumbai, “The zero-duty access to Indian jewellery will definitely boost exports, and provide a leg-up to the gem and jewellery industry of India. Since Indian craftsmanship and quality have improved a lot in the recent past, European customers will surely look for more and more supply from our jewellery manufacturers.”
At a time when India’s gems and jewellery industry is grappling with higher US tariffs, the EU-India FTA offers much-needed relief by opening a large, duty-advantaged European market. “The signing of the India-EU Free Trade Agreement is a historic achievement that is sure to bring relief to the gem and jewellery industry in India, especially given the current trade dynamics with the USA,” says Colin Shah, Kama Jewelry, Mumbai, adding, “The FTA will empower Indian gems and jewellery exporters to compete effectively in the European market, especially when gold and silver prices are skyrocketing. This strategic diversification of exports will help revive the sheen of the gems and jewellery trade, which has been on a decline for months, with occasional spikes in between.”
Reduced tariffs and smoother access to the EU can help exporters diversify risk, stabilize volumes, and protect margins. Explains Surana, “Zero-duty access to the EU will help counter losses from 44% US export drops, and rising metal prices, allowing India to reclaim market share from China and Thailand through superior design and craftsmanship, and expertise in lightweight and fashion jewellery.
“The FTA is poised to deepen ties with European buyers by enabling brand expansion and market diversification into the world's largest consumer bloc. It fosters longer-term sourcing partnerships, with projections to double bilateral gem and jewellery trade to $10 billion within three years via ramped-up shipments from key Indian hubs like Gujarat and Rajasthan.”
Concludes Ray, “Beyond exports, the India–EU FTA will give Indian jewellery manufacturers predictable, long-term access to the EU market, encouraging them to expand production lines, invest in automation, and increase capacity in key clusters. Indian manufacturers have a lot to learn from Europe in terms of jewellery manufacturing techniques, designing and branding.
“The FTA will help jewellery manufacturers to expand the market as a category. As jewellery manufacturing is highly labour-intensive, creating jobs across design, casting, setting, polishing, quality control, and logistics will see a new wave, just as it happened after the liberalization of the economy in 1991.”