As the India-European Free Trade Association (EFTA) Trade and Economic Partnership Agreement (TEPA) comes into force on 1st October, India’s gems & jewellery exporters stand to gain from sustained duty-free access to key European markets — an advantage that has been preserved and reinforced under the new pact.
Signed on 10 March 2024, TEPA is India’s first FTA with developed European economies — Switzerland, Norway, Iceland and Liechtenstein. It reflects a commitment not just to freer trade in goods and services, but also to investment, sustainable development, and job creation.
For the gems and jewellery sector, TEPA secures duty-free access for several important product lines across EFTA nations.
- Switzerland: Cut & polished natural diamonds, gold jewellery, and polished rubies, sapphires & emeralds
- Norway: Cut & polished natural diamonds, gold jewellery, silver jewellery, and imitation jewellery
- Iceland: Gold jewellery, silver jewellery, and imitation jewellery
The agreement goes beyond tariff elimination by creating a stable and predictable trade framework for exporters. It also brings a strong investment component, with EFTA countries committing USD 50 billion in FDI over the first decade, followed by another USD 50 billion in the subsequent five years.
This inflow is expected to generate one million direct jobs, with opportunities for design innovation, precision manufacturing and technology upgrades that could particularly benefit India’s jewellery MSMEs. Additionally, easier access to advanced equipment, inputs and capital from Europe is set to strengthen India’s value chains and improve the competitiveness of its jewellery exports.