India-EU FTA: GJEPC Urges for Concessions to Gain Market Access and Double Gem & Jewellery Trade to $10Bn

With the India-EU Free Trade Agreement (FTA) negotiations nearing conclusion and the upcoming India-EU Summit in New Delhi on January 27th 2026, the Gem & Jewellery Export Promotion Council (GJEPC) has been consistently urging the government to negotiate duty free market access for Indian made jewellery exports to EU.

The GJEPC argues that with gold/silver prices at an upsurge, this will give a significant market advantage to Indian made products.

Strategic Demands

The GJEPC notes that current EU import duties, ranging from 2.5% to 4% on gold, silver, platinum, imitation jewellery and coins, significantly constrain the competitiveness of Indian exporters.

To address this, the Council has formally sought the removal or reduction of these tariffs. In a move to ensure a balanced and mutually beneficial agreement, the GJEPC has also proposed calibrated concessions on select imports from the EU, particularly regarding diamonds and coloured gemstones.

Commenting on the critical nature of these negotiations, Shri Kirit Bhansali, Chairman, GJEPC, said: “We commend the sustained and focused efforts of Hon’ble Prime Minister, Shri Narendra Modi and Commerce and Industry Minister Shri Piyush Goyal in advancing the India-EU FTA negotiations. We have high expectations that this agreement will deliver concrete gains for the gem and jewellery sector. Tariff reduction on jewellery products is critical to help Indian exporters raise their share in Europe’s large import market, improve margins for MSMEs, and support employment across the value chain.”

A strong FTA is viewed as a catalyst for transforming the Indian export profile. By leveling the playing field, the GJEPC believes Indian exporters can move beyond raw material supply to scale volumes in higher-value jewellery categories, strengthening India’s long-term positioning in the global trade ecosystem.

GJEPC has expressed high expectations for the pact. The apex body is urging the Government of India to secure meaningful, sector-specific outcomes that will significantly expand India’s footprint in the lucrative European gem and jewellery market.

India and the European Union already share a robust bilateral trade relationship in the sector, valued at around US$ 5.15 billion. As of CY2024, India’s exports to the EU stood at US$ 2.7 billion, while imports totaled US$ 2.5 billion.

While exports are currently dominated by cut and polished diamonds (valued at US$ 1.72 billion), followed by gold jewellery (US$ 453 million) and silver jewellery (US$ 85 million), the GJEPC has been highlighting immense, untapped potential in finished jewellery categories.

Market Opportunity

Current data underscores a significant opportunity for growth

The EU-27’s annual imports of Gold Jewellery from the global market is around $11.37 billion. However, imports from India stand at just $468 million, representing a market share of only 4.11%. Similarly, out of the $2.47 billion global import market of Silver Jewellery in the EU, India captures just US$ 104 million (4.2%).

In Imitation Jewellery, India holds a meager 2% share of the EU's $2.7 billion import market. As per ITC Trade Map India has a huge untapped export potential of around $16 billion in jewellery products in the EU.