The Trade and Economic Partnership Agreement (TEPA), concluded after 16 years of negotiations and signed earlier this year, has now been ratified by all member countries of the European Free Trade Association (EFTA). Commerce and Industry Minister Piyush Goyal formally announced on Saturday that the agreement will take effect from 1 October 2025.
Under the terms of the pact, customs duties on Indian diamond exports—currently ranging between 2.5% and 5%—will be phased out over a ten-year period. Switzerland, a major global hub for luxury goods and diamond trading, stands out as India's primary diamond trade partner among the EFTA bloc, while the other three nations currently account for negligible trade volumes in this sector.
Beyond gems and jewellery, TEPA is expected to catalyse wide-ranging economic cooperation. “This agreement is among India’s most comprehensive trade deals. It is poised to deepen our engagement with Europe and unlock large-scale investments,” said Goyal.
The pact aims to attract $100 billion in foreign direct investment (FDI) over the next 15 years—$50 billion in the first decade and an additional $50 billion in the following five years. The government estimates that this could result in the creation of one million direct jobs across sectors in India.
Industry stakeholders have welcomed the agreement, noting its potential to enhance competitiveness for Indian diamond exporters and further integrate India into global luxury supply chains.
