India's recent Trade and Economic Partnership Agreement (TEPA) with the European Free Trade Association (EFTA) is poised to revolutionize the gem and jewellery (G&J) sector, particularly in expanding exports to EFTA nations, notably Switzerland. With EFTA countries abolishing customs duties on chapter 71 products (Gem and Jewellery), Indian exporters now enjoy duty-free access across Switzerland, Iceland, Norway, and Liechtenstein.
Vipul Shah, Chairman of GJEPC, expressed appreciation for the collaborative efforts with the Government of India, specifically Minister of Commerce & Industry Shri Piyush Goyal, in incorporating GJEPC's recommendations into the TEPA. Shah envisions the $100 billion bilateral trade pact unlocking significant opportunities for Indian G&J manufacturers, projecting exports to the EFTA region to surge from $335 million to at least $1 billion. Emphasizing the potential, Shah highlighted opportunities in fine gold jewellery, silver jewellery with high gloss and matte finishes, as well as luxurious diamond and coloured gemstone jewellery.
GJEPC played a pivotal role in the negotiations, closely collaborating with the Ministry of Commerce and Industry to ensure the industry's best interests were represented. With EFTA's total imports of finished Gem & Jewellery products standing at US$12.3 billion, India's current share of $335 million (2.7% of EFTA total imports) underscores the vast potential for growth in untapped EFTA markets.
Key relaxations for EFTA nations in the gem and jewellery sector include phased elimination of duties on products such as natural/cultured pearls, rough diamonds, and precious and semiprecious coloured gemstones, among others. Additionally, customs duty reductions on specific items over a period of years and a notable reduction in duty on precious metal gold imports from EFTA countries signify significant strides toward fostering trade relations and unlocking export opportunities for the Indian G&J sector.
