The Gem & Jewellery Export Promotion Council (GJEPC) has welcomed the elimination of 2-4% import duties on Indian gem and jewellery products under the ‘mega’ FTA
Mumbai: On Tuesday, January 27, 2026, India and the European Union (EU) formally announced the finalization of negotiations for a mega free trade agreement, that is expected to be signed later this year and may come into force from early next year. Prime Minister Narendra Modi termed it the biggest free trade agreement in India’s history, after holding summit talks with the EU’s top leaders Ursula von der Leyen and Antonio Costa. He added that the India-EU FTA accounts for 25% of global GDP and one-third of global trade.
The Gem & Jewellery Export Promotion Council (GJEPC) has welcomed the elimination of import duties on Indian gem and jewellery products under the India-EU FTA. This removes 2-4% duties on precious jewellery, unleashing huge export potential with the 27-member EU bloc—home to the world’s elite buyers.
India’s gem and jewellery exports accounted for S 30 billion in calendar year 2024. Bilateral trade with the EU reached $ 5.2 billion, with exports at $ 2.7 billion (8.92% of total) and imports at $ 2.5 billion. EU jewellery imports from India remain limited at $ 628 million, of which $ 573 million was precious jewellery and USD 55 million was fashion (imitation) jewellery—these currently attract 2-4% duties— leaving the market dominated by non-FTA competitors.
Kirit Bhansali, Chairman, GJEPC thanked PM Modi and Commerce & Industry Minister Piyush Goyal for securing the India-EU FTA, calling it the ‘mother of all trade deals’. “The India-EU FTA is expected to supercharge market diversification for the gem and jewellery industry. This transformative pact aims to double bilateral trade to $ 10 billion (~Rs 91,000 crore) within three years. Zero-duty access to the world’s largest consumer market empowers export hubs in Gujarat, Rajasthan, Maharashtra and West Bengal to ramp up shipments of precious jewellery (plain and studded), silver, and imitation jewellery—capitalizing on India’s renowned design prowess. Especially with exports to the USA down by 44%, this timely pact will help Indian exporters salvage lost ground,” Bhansali said.
“Amid soaring metal prices and evolving trade dynamics, the deal enhances margins, sharpens India’s competitive edge in design and craftsmanship, accelerates manufacturing, and generates jobs. For Indian jewellery retailers, it opens doors to expand brands across Europe, building on their rising global footprint,” he added.
Zero-duty access opens doors across segments, leveraging India’s edge in lightweight/minimalist gold, machine-made, studded, silver, coloured gemstone and fashion jewellery. The India-EU FTA will boost exports, improve competitiveness, create jobs and significantly improve bilateral trade in the long run.
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