EFTA, GJEPC: The recently inked Trade and Economic Partnership Agreement (TEPA) between India and the European Free Trade Association (EFTA) holds immense promise for India’s gem and jewellery sector. The Gem & Jewellery Export Promotion Council (GJEPC) anticipates a transformative impact, with exports projected to soar from the current $335 million to a staggering $1 billion in the near future.
One of the pivotal aspects of the agreement is the elimination of customs duties on the entire chapter 71 (Gem and Jewellery products). This move paves the way for Indian exporters to access duty-free markets across all EFTA countries, including Switzerland, Iceland, Norway, and Liechtenstein.
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Vipul Shah, Chairman of GJEPC, expressed gratitude to the Indian government, particularly to Shri Piyush Goyal, Hon’ble Minister of Commerce & Industry, for incorporating GJEPC’s recommendations into the TEPA.
Vipul Shah, Chairman, GJEPC said, “I extend my gratitude to the Government of India, particularly to Shri Piyush Goyal, Hon’ble Minister of Commerce & Industry, for incorporating GJEPC’s recommendations in the India-EFTA Trade and Economic Partnership Agreement (TEPA). The $100 bn bilateral trade pact has opened up immense opportunities for Indian gem and jewellery manufacturers to broaden their export prospects in the EFTA region. It will also pave the way for new and larger FTAs with many other European countries. I am sure that exports of gem and jewellery products to EFTA group will scale up from US$335 million to at least US$1 billion in the coming times. I believe there is a huge scope for exporting fine gold jewellery and 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 interests of the gem and jewellery sector were adequately represented. The council provided detailed recommendations at the HS line-wise level, ensuring that the agreement aligns with the best interests of the industry as a whole.
EFTA’s total imports of finished Gem & Jewellery products currently stand at an impressive $12.3 billion, with India’s share merely touching $335 million. This reveals a significant untapped potential for Indian manufacturers and exporters to enhance their presence in the EFTA markets.
The relaxation of duties for EFTA countries encompasses various products, with duty-free status being granted over a period of 5, 7, or 10 years. Additionally, customs duties on certain products have been gradually reduced, further enhancing the competitiveness of Indian exports. Notably, there’s a noteworthy 1% reduction in duty on precious metal gold imports from EFTA countries, which is expected to stimulate trade and investment in this segment.
- Imports of the following products from EFTA countries in India would be duty free at the end of 5 years, 7 years or 10 years meaning thereby duties on the following products would be eliminated in equal instalments over a period of 5/7/10 years.
- Natural/Cultured Pearls – Worked and Unworked
- Rough diamonds – Natural
- Precious and Semiprecious coloured gemstones – Unworked
- Polished Synthetic stones.
- Dust and Powder of Diamonds and Stones
- Customs duty on the imports of the following products from EFTA has been reduced from 5% to 2.5% to be eliminated in 5 equal annual instalments
- Cut and Polished Diamonds
- Precious and Semiprecious coloured gemstones – Worked
- Lab grown diamonds -polished
- The most important is reduction of duty by 1% from Bound Rate on precious metal gold imports from EFTA countries
This historic trade pact marks a significant milestone for India’s gem and jewellery sector, signaling a new era of growth and collaboration with European markets. With the agreement aligned with FTP norms and deemed feasible, it sets the stage for a prosperous future for India’s gem and jewellery exports to the EFTA region.