The Indian gem and jewellery sector, long under strain from the 50 per cent US tariff imposed last August, is now seeing a silver lining. A new free trade agreement with the European Union promises duty-free access for Indian exports to 27 EU countries, opening fresh opportunities for the industry.
Under the deal, European authorities are expected to reduce tariffs on India’s gem and jewellery exports from 4 per cent to zero, giving Indian products a stronger edge in the European market.
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Until August last year, the US was India’s largest gem and jewellery market, accounting for 30–34 per cent of the country’s total exports in this sector. However, Trump’s tariffs had raised concerns about declining business figures. The new EU deal opens access to Europe’s ₹7 lakh crore jewellery market at zero duty, offering a significant opportunity for growth.
Potential growth and employment
According to the Gem and Jewellery Export Promotion Council (GJEPC), bilateral trade in the gem and jewellery sector could exceed ₹91,000 crore over the next three years. Experts believe that exports of gold and studded jewellery to Europe are likely to increase due to lower manufacturing costs for finished products. This growth could also boost employment in small and medium enterprises (MSMEs) associated with the sector across India.
